2 hours ago
Bentley is set to cut 275 jobs in the UK as the luxury carmaker faces a “challenging global market environment.”
Owned by Germany’s Volkswagen, Bentley is preparing to launch its first all-electric model but acknowledged it still needs to convince consumers to move away from internal combustion engine vehicles.
On Tuesday, the company announced it would reduce its workforce by about 6%, cutting approximately 150 permanent office-based roles and not filling vacant positions or replacing departing employees.
The announcement coincided with Bentley reporting a 42% drop in annual operating profit to €216m (£187m) for 2025 compared to the previous year.
Although this marks Bentley’s seventh consecutive year of profitability, the company said profits were impacted by US tariffs introduced during Donald Trump’s administration, foreign exchange fluctuations, weaker sales in China, and strategic decisions made by its parent company, Volkswagen.
Frank-Steffen Walliser, Bentley’s chief executive, stated the company is making “some difficult decisions to ensure the long-term competitiveness of the business.”
He added that the job cuts, alongside continued investment in its sites, will “ensure Bentley remains financially resilient, strategically focused and well positioned for the next generation of luxury vehicles.”
US tariffs and reduced demand in China have also pressured other luxury carmakers. For example, Aston Martin Lagonda announced plans in February to cut its workforce by 20% to save £40m and address widening losses.
Bentley delivered 5% fewer cars in 2025 compared to the previous year, although this was partly offset by increased customer demand for bespoke vehicle personalization.
The Bentayga luxury SUV remains Bentley’s bestselling model, starting at £176,000 but often costing significantly more with higher specifications.
The carmaker plans to unveil its electric “urban SUV” later this year. In late 2024, Bentley postponed its electrification timeline, deciding to continue selling fossil fuel vehicles until 2035—five years later than initially planned—and will also continue offering plug-in hybrids beyond 2035.
Walliser previously noted there is “not a lot of demand” for electric vehicles among Bentley’s customer base, reflecting a broader trend of declining EV interest among wealthy buyers.
Other Volkswagen-owned luxury brands have also scaled back their electric vehicle ambitions. Porsche recently reversed its ambitious EV strategy and announced job cuts, while Lamborghini abandoned plans for all-electric supercars, opting instead to focus on plug-in hybrids.
Battery electric vehicles offer advantages such as smooth and rapid acceleration, but Lamborghini’s CEO has said sports car enthusiasts miss the sound of internal combustion engines.
