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Bentley is to cut 275 jobs in the UK as the carmaker faces a “challenging global market environment”.
The luxury brand, owned by Germany’s Volkswagen, is preparing to launch its first all-electric model but acknowledged it had some work to do to persuade consumers to switch away from internal combustion engine vehicles.
The company said on Tuesday it was slashing about 6% of its 4,600-strong workforce by cutting about 150 office-based permanent staff and by not filling vacant positions or replacing employees.
The announcement came as the company reported a 42% fall in annual operating profit to €216m (£187m) in 2025, compared with a year earlier.
While this marked a seventh consecutive year of profitability at Bentley, which produces cars at its factory in Crewe in Cheshire, the company said its profits had taken a hit from the impact of US tariffs introduced by Donald Trump and foreign exchange changes and weaker sales in China, as well as decisions made by its parent company, VW.
Frank-Steffen Walliser, Bentley’s chief executive, said the company was making “some difficult decisions to ensure the long-term competitiveness of the business”.
He added that the job cuts and investment in its sites would “ensure Bentley remains financially resilient, strategically focused and well positioned for the next generation of luxury vehicles”.
US tariffs and weaker demand in China have also put pressure on other luxury carmakers. Aston Martin Lagonda announced plans in February to cut its workforce by 20% in an effort to save £40m and tackle widening losses.
Bentley said it had delivered 5% fewer cars in 2025 compared with a year earlier, but this was partly offset by higher customer demand for bespoke personalisation of its vehicles.
The Bentayga luxury SUV remains its bestselling model. It has a starting price of £176,000 but can cost significantly more with higher specifications.
The carmaker is due to unveil its electric “urban SUV” later this year. It pushed back its electrification plans in late 2024, when it said it would continue to sell fossil fuel cars until 2035, five years later than previously planned. It has also said it will continue to sell plug-in hybrids beyond 2035.
Walliser has previously said there was “not a lot of demand” for electric vehicles among its customer base, at a time when carmakers have seen a drop-off in demand for EVs among their wealthy clientele.
Porsche, another VW-owned luxury brand, has walked back on its ambitious EV strategy and announced job cuts in recent days. The Italian supercar manufacturer Lamborghini has also abandoned plans to make all-electric vehicles, deciding instead to focus on plug-in hybrid cars.
Battery cars are seen to offer some distinct advantages to luxury carmakers, particularly smooth and rapid acceleration. However, Lamborghini’s boss has said that sports car lovers reported missing the noise of a car with an internal combustion engine.
