UK Business

Bentley sheds hundreds of UK jobs following profit fall

The luxury carmaker Bentley is to cut approximately 275 roles at its historic Crewe headquarters, a move that has stunned its workforce and underscores the mounting pressures on even the most prestigious automotive brands.

The proposed cuts, representing around 6% of the company’s 4,600 employees, were announced as part of what the company termed an “organisational adjustment”. The roles affected are primarily within management, agency, and non-manufacturing departments.

Frank-Steffen Walliser, Bentley’s chairman and chief executive, stated the difficult decisions were necessary to ensure the “long-term competitiveness of the business” and to position the firm for “the next generation of luxury vehicles”. He pledged support for those affected.

Profits Fall as External Pressures Mount

The restructuring comes against a stark financial backdrop. Bentley revealed a 42% drop in annual operating profits for 2025, falling to €216 million (£186.6 million). The company cited a “challenging global market environment”, pinpointing weaker sales in China and negative foreign exchange impacts.

Two specific external factors have significantly eroded earnings. The company said it faced higher costs stemming from strategic changes within its parent company, the Volkswagen Group, including expenses related to VW’s discontinuation of a D-segment platform. More acutely, the impact of US tariffs—introduced under the Trump administration and described as “extremely disruptive” within the industry—cost Bentley approximately €42 million last year alone.

This profit decline follows a period of sustained financial performance, where Bentley had reported six consecutive years of profitability. The company’s operating profit was €373 million in 2024, after having reached €389 million in 2021.

Union ‘Stunned’ as Details of Cuts Emerge

The GMB trade union, representing workers at the Crewe plant, said the announcement had “come out of the blue”. Karen Lewis, a GMB organiser, said the workforce was “stunned”, linking the cuts directly to Trump’s tariffs and the lingering effects of the Covid-19 pandemic.

According to the union, around 150 permanent jobs at the Crewe site are directly at risk. The remaining 125 roles are expected to be removed through measures such as not replacing temporary workers, relying on natural staff turnover, and leaving vacancies unfilled.

The GMB has vowed to fight for “minimum redundancies and the maximum payouts” for its members.

A Sector-Wide Squeeze on Luxury Marques

Bentley’s troubles are mirrored across the sector. Its British rival Aston Martin Lagonda recently confirmed plans to cut up to 600 jobs, equating to a fifth of its global workforce, as it confronts widening losses.

Aston Martin, which reported pre-tax losses of £363.9 million for 2025, is also aiming to slash costs by around £40 million. The company cited similar pressures, including the impact of US tariffs and weak demand in China. In a sign of the strategic recalibrations underway, Aston Martin has also signalled delays to its first electric vehicle, choosing to focus more on hybrid models in the near term.

Electrification Plans Proceed Amid Uncertainty

Despite the cuts, Bentley insists it remains committed to a long-term electric future. The company is continuing a major investment programme at its Pyms Lane site in Crewe—its sole design and manufacturing centre—to prepare for electric vehicle production. This includes building a new Battery-Powered Electric Vehicle (BEV) assembly line and a new Paint Shop.

The company’s “Beyond100+” strategy commits it to becoming exclusively electric by 2035, with a pledge to launch a new hybrid or electric model every year for the next decade. Its first fully electric vehicle, an SUV, is scheduled for launch in 2026.

However, the research briefing indicates the broader EV roadmap may be slowing, with subsequent Bentley EV models not expected before 2030. This aligns with a wider industry trend of manufacturers reassessing aggressive electrification timelines amid market fluctuations.

The current difficulties mark a challenging start for CEO Frank-Steffen Walliser, the Porsche engineering veteran who took the helm in July 2024. They also evoke memories of a previous major restructuring in June 2020, when Bentley cut 1,000 jobs in response to the pandemic.

For now, the focus at Crewe—a site with a history stretching back to Rolls-Royce aero-engine production in World War II—is on navigating a painful present while building for an electric, but uncertain, future.

Thaddeus Norwell

Business & Technology Writer
Thaddeus Norwell is a business and technology writer based in London, UK. He reports on business trends, digital innovation, and regulatory developments shaping the UK economy, focusing on practical outcomes rather than speculation. His work explores how technology and policy affect companies, markets, and consumers.
· Market and regulatory analysis, fintech sector reporting, enterprise technology coverage
· UK corporate landscape, tax and fiscal policy, interest rates and mortgages, AI regulation, cybersecurity threats, startup ecosystem

Related Articles

Back to top button