Famed British luxury carmakers Bentley and Aston Martin aren't immune to the impact the coronavirus pandemic is having on the global economy and automotive industry.
Both companies this week announced significant job cuts to reduce costs due to weakening demand for their vehicles.Â
Volkswagen-owned Bentley said Friday that it plans to eliminate up to 1,000 jobs, nearly a quarter of its workforce, through a "voluntary release" program as its business plans have been "clearly derailed by the impact of the pandemic."
"With this considerable forecast reduction to future revenues, Bentley has hastened plans carrying out a comprehensive review of its cost and investment structure – and as the last resort, as with any organisation, the people costs and structure," the company said in a release.
The coronavirus pandemic also delayed Bentley's plans to detail a restructuring plan called "Beyond100." The program, according to the company, is designed to prepare the century-old automaker for "the next 100 years."
Bentley's cuts come a day after fellow British automaker Aston Martin said it plans to cut up to 500 jobs, "reflecting lower than originally planned production volumes and improved productivity across the business." It employs about 2,600 people globally.
The job cuts are expected to begin in August, according to a company spokeswoman. The announcement comes a week after Aston Martin said Tobias Moers, CEO of Mercedes-AMG, would succeed Andy Palmer, who resigned, as CEO effective Aug. 1.
Aston Martin's employment reductions are part of a plan to cut costs on an annualized basis by about £28 million ($35.6 million). The restructuring is expected to cost about £12 million ($15.3 million) in 2020, the company said.