Bentley Motors Announces Reduction in Workforce Amid US Tariffs and Slowing Chinese Market

Bentley Motors Ltd. Announces 275 Job Cuts Amid Industry Pressure

Bentley Motors Ltd., a British luxury-car maker owned by Volkswagen AG, plans to reduce its workforce by 275 jobs, approximately 6% of its total workforce. The cuts will primarily affect office roles, with the company stating that the number may decrease further as vacancies are closed and existing employees choose to leave.

The job cuts are part of Bentley's efforts to ensure its business remains competitive in an industry facing significant pressure. The company's parent, Volkswagen AG, has also initiated expense-cutting measures across its brands, citing challenges such as uneven Electric Vehicle (EV) demand, a sales slump in China, and the impact of US tariffs.

The US tariffs imposed on Bentley last year resulted in a loss of approximately €42 million ($48 million). Despite this, the company remains committed to launching its first Electric Vehicle (EV), a sport utility vehicle, but has pushed back its timeline to 2030. Bentley had previously targeted creating only fully electric cars by the end of the decade but has since revised its plans to continue producing models with combustion engines after 2035.

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In 2022, Bentley shipped 5% fewer cars, but the average selling price increased, resulting in a 1% decline in revenue to €2.62 billion. The Middle East conflict poses a potential risk to the industry, but Bentley has not cut production and is not currently sending cars to the region.

This move follows Aston Martin Lagonda Global Holdings Plc's announcement of job cuts, which may reach up to 20% of its workforce.