Covid-19 and the job crunch

Aston Martin Lagonda Global Holdings plans to cut as many as 500 jobs to cope with lower demand for luxury cars amid the coronavirus pandemic.

The British company will begin consulting with employees and unions in coming days about building fewer front-engined sports vehicles, Aston Martin said on Thursday. The automaker is targeting savings of about £18 million ($22.6 million) in operating and manufacturing costs, while also lowering capital expenditure by a further £10 million.

The elimination of 500 positions equates to almost 20 per cent of Aston Martin’s workforce. The carmaker is the latest from the industry to announce severe cuts in the wake of the Covid-19 outbreak, with Renault SA, BMW AG and Scania AB all initiating retrenchment processes over the past week. The government-imposed lockdowns across Europe forced the closure of factories and showrooms, leaving would-be car buyers stuck at home.