Aston Martin announces 500 jobs to go as sales fall

Five hundred people are to lose their jobs at car firm, Aston Martin, which says it needs to save money.

The luxury car manufacturer, which has a plant in Gaydon, Warwickshire, says the plans are part of a major restructuring.

The union Unite says it thinks all the redundancies will be at the Gaydon plant, meaning 1 in 3 of the 1600 employees there will lose their jobs.

Workers will have heard the news while most are on furlough because of Coronavirus.

The number of vehicles sold by Aston Martin almost halved in the first three months of the year, as it was hit by the beginning of the coronavirus crisis.

Aston Martin said the restructuring is expected to cost around £12 million and added the strategy is expected to deliver £10 million in operating cost savings each year.

Last week, the company's chief executive, Dr Andy Palmer, announced he was leaving the manufacturer after a collapse in its share price.

Dr Palmer, who has led Aston Martin since 2014, is to be replaced as chief executive by Tobias Moers, who currently runs Mercedes-AMG.