Aston Martin is set to reduce its workforce by 5% after experiencing a 20% increase in losses last year and selling fewer cars than in 2023, due to ongoing supply chain issues and production delays.

The luxury car maker announced plans to cut 170 jobs as part of a cost-saving strategy aimed at steering the company back towards profitability amid a series of new product launches.

The iconic British manufacturer, renowned for producing James Bond's vehicles, has not yet specified whether the job cuts will affect manufacturing or office-based roles. On Wednesday, the firm stated that the plan was designed to ensure the company is "appropriately resourced for its future plans", labelling the cuts as a "difficult but necessary action".

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Aston Martin is aiming for annual savings of £25m, with expectations to achieve around half of this target this year. Since being acquired by Canadian billionaire Lawrence Stroll in 2020, the company has launched a range of new models in an effort to revive its flagging fortunes.

Recently, Adrian Hallmark was appointed as the new CEO, taking up the position in September as sales of the new Vantage and DBX707 models began to increase, contributing to a boost in production volumes. The company also unveiled its flagship Vanquish model in September.

Aston Martin reported that these launches helped to drive sales later in the year as more new models were delivered to customers, resulting in a 10% year-on-year increase in wholesale volumes in the second half compared to 2023.

The luxury carmaker's wholesale volumes saw a decline of 9% in the past year, with 6,030 cars sold, further expanding its pre-tax losses by 21% to £289m. Aston Martin's debt has swollen by 43% to £1.16bn during the same period, while its shares have plummeted by around 33% over the last 12 months.

The company had previously cautioned in September that supply chain hiccups would negatively impact its annual production by roughly 1,000 cars. Additionally, it has been struggling with sluggish sales in due to a broader dip in demand nationwide.

According to Mr Hallmark, the company has been navigating "a period of intense product launches, coupled with industry-wide and company challenges". His goal for Aston Martin is to "transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties".