Bentley and Aston Martin slash jobs in response to market downturn
Luxury British automakers Bentley and Aston Martin have announced they will be making significant job cuts due to lower production outputs.
Job cuts continue to spread through the automotive industry as car manufacturers try to reduce costs due to a dramatic sales decline in the first half of 2020.
Bentley has announced it would be slashing 1000 jobs, nearly 24 per cent of the company's workforce, as reported by news agency Reuters.
The announcement came within 24 hours of Aston Martin announcing it would cut 500 jobs, more than 19 per cent of its personnel.
Both British luxury carmakers cited lower production outputs as the reason for the job cuts, falling short of placing the blame entirely on the COVID-19 pandemic.
It's been a tumultuous period for Aston Martin, with the company announcing that CEO Andy Palmer will be replaced with Mercedes-AMG CEO Tobias Moers.
Germany's Daimler AG owns a 5 per cent stake in the British sports car company and supplies Mercedes-AMG powertrains for all new Aston Martin vehicles. Bentley is fully owned by Volkswagen Group.
Following the news, Reuters reported that Italian private equity firm Investindustrial Advisors Ltd cut its stake in Aston Martin from 19.92 per cent to 14.99 per cent.
In late May, Bloomberg reported that the automotive industry had cut 38,000 jobs globally.
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