According to Aston Martin, the 500 job cuts are part of a “fundamental reset” to help “right size” its structure. An employee consultation process is to be carried out in the coming days as the manufacturer seeks to reduce costs by £10 million (US$12.5 million). Alongside the job cuts, Aston Martin would also reduce budgets for contractors, marketing and travel. The luxury carmaker also plans to reduce its sports car production in order “to rebalance supply to demand”.

Italian private-equity firm Investindustrial Advisors is reported to have reduced its stake in the British company from a previous 19.92% to 14.99% on May 29. In the first three months of the year, the company had accumulated losses of £120 million (US$150 million). In the morning of June 4, shares of Aston Martin were trading 4.5% lower.