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Aston Martin in profit warning amid US tariff woes
Getty ImagesAston Martin Lagonda has warned of further losses as it faces US tariffs, and also raised fears over supply chain pressures from Jaguar Land Rover’s cyber-attack fallout.
The Warwickshire luxury carmaker said it was now braced for underlying losses greater than £110m, which was the bottom of the previous expected range.
The announcement marks the second downgrade to its outlook since early July.
Aston Martin bosses said they had launched an “immediate” review of costs and spending in light of tougher trading.
It sent shares tumbling by as much as 11% at one point during trading on Monday.
The firm said wholesale volumes were set to drop by a mid-high single-digit percentage due to “heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs” – with a weaker performance being seen across North America and Asia.
Getty ImagesIn a statement on Monday, the firm said: “The global macroeconomic environment facing the industry remains challenging.
“This includes uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism, changes to China’s ultra-luxury car taxes and the increased potential for supply chain pressures, particularly following the recent cyber incident at a major UK automotive manufacturer.”
Tariff quotas
The group has seen shares come under pressure this year over concerns about the impact of Donald Trump’s tariff war.
The firm limited shipments to the US in the second quarter after the president imposed a 25% tariff on car imports in April.
It then resumed shipments in June as the UK reached an agreement with the US for a lower 10% tariff on UK-made cars for the first 100,000 vehicles per manufacturer.
Anything above that threshold will be hit with a 27.5% duty.
But Aston Martin said the tariffs were still having an impact on performance.
It said: “For UK automotive manufacturers, the introduction of a US tariff quota mechanism adds a further degree of complexity and limits the group’s ability to accurately forecast for this financial year end and, potentially, quarterly from 2026 onwards.
“The group continues to engage with both the US and UK governments to secure greater clarity and certainty.”
Aston Martin said while “positive dialogue” had been achieved with the US government directly, the firm was still seeking proactive support from the UK.
It hopes that profitability and free cash flow will “materially” improve in 2025-26 as it cuts costs and ramps up delayed production of its Valhalla model – the group’s first plug-in hybrid mid-engine supercar.
In February, before tariffs were announced, Aston Martin cut 170 jobs after seeing losses widen by a fifth last year and debts pile up.
Its results for the first half of 2025 showed core profitability (EBIT) slumped to £121m, compared with £99.8m in the same period of 2024.
It is unusual for a senior figure at the Bank to be so forthright on market movements.
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People walk past a Nike store in New York City, on April 2, 2025.
Kylie Cooper | Reuters
Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the organization, mostly concentrated in its technology department.
In a note from COO Venkatesh Alagirisamy, the company said the layoffs were part of Nike’s broader “Win Now” turnaround strategy aiming to reshape its technology team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.
“Collectively, these changes will result in a reduction of approximately 1,400 roles in global operations, with the majority in technology,” Alagirisamy wrote. “These reductions are very hard for the teammates directly affected and for the teams around them, too.”
A Nike spokesperson said the layoffs are about better positioning the organization for the current pace of sports and accelerating its growth. The layoffs affect employees across North America, Asia and Europe and represent less than 2% of the company’s total global head count.
“This is not a new direction,” Alagirisamy wrote. “It is the next phase of the work already underway.”
Affected employees will be notified beginning Thursday, Nike added.
CEO Elliott Hill has been working to turn Nike around after years of slumping sales. While Hill has made some initial progress, it’s come with some bumps in the road.
Nike announced 775 job cuts in January, primarily at its U.S.-based distribution centers, due to the company’s work in accelerating its use of automation. At the time, the company said the cuts are part of Nike’s goal to return to “long-term, profitable growth.”
Those layoffs came on top of a round of cuts last summer that affected less than 1% of Nike’s corporate staff as part of the company’s efforts to realign the business.
In its third fiscal quarter earnings report last month, the retailer warned that sales will continue to fall for the rest of the year, primarily led by an anticipated 20% decline in China during the current quarter.
— CNBC’s Jessica Golden contributed to this report.
A key reason for the layoffs is Meta’s increased spending in other areas of the company, including AI, for which it will this year spend $135bn (£100bn). This is roughly equal to the amount it has spent on AI in the previous three years combined, according to a person who viewed the memo.
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