Bentley is to cut 275 jobs as the luxury car maker faces a sharp drop in profits and mounting pressure from faltering global markets, underscoring growing problems even at the top end of the auto industry.
The Crewe-based manufacturer has confirmed that around 6 per cent of its 4,600 staff will be affected as part of what it described as “organizational efficiency measures”, with roles expected to move across administrative, agency and non-manufacturing roles. The cuts will now go into consultation, with the company stressing that it will support affected workers throughout.
The announcement came as Bentley reported a 42 per cent drop in operating profit to £187 million, down from £322 million last year and well below a peak of £509 million in 2023. The decline reflects a combination of soft global demand, rising cost pressures and global uncertainty, all of which are increasingly shaping the premium auto brand.
Car sales are also down, with Bentley delivering 10,131 cars last year, a drop of nearly 5 percent, largely due to a decline in key international markets, especially China. Declining Chinese demand has become a major challenge for luxury goods manufacturers, many of whom have relied heavily on the region for growth over the past decade.
Chief executive Frank-Steffen Walliser acknowledged the scale of the challenge, saying the company was being forced to take “difficult decisions to ensure the long-term competitiveness of the business”. While he stressed that the cuts were not “panic measures”, he acknowledged that the workplace remains volatile, with further adjustments likely if conditions worsen.
Bentley sought to offset the decline in profits, arguing that without external pressure, including rising costs linked to parent company Volkswagen and the impact of US costs, financial performance would have been broadly consistent with 2024. Still, the statistics highlight that even the most high-end luxury brands are immune to the broader economic crisis.
The restructuring comes at an important time for the business as it transitions to electrification. Bentley is nearing completion of a new assembly line at its Crewe headquarters, which will support the production of its first fully electric car, which is scheduled to be launched in early 2027. Investments represent an important step in your long-term strategy, although the pace and direction of that change is changing.
In a significant shift, the company has backed away from its previous ambition to become an all-electric company this decade. Instead, it is pursuing a “balanced portfolio”, which extends the duration of internal combustion and hybrid models due to renewed customer demand and a broader decline in the adoption of electric vehicles.
This redesign reflects a broader trend across the premium automotive sector. Manufacturers including Lamborghini have also delayed or revised EV-only strategies, reflecting both consumer reluctance and the practical challenges of bringing efficient electric models to scale.
Beyond product strategy, Bentley is also navigating an increasingly politicized landscape around car size and emissions. Walliser has defended the company’s larger models, such as the Bentayga SUV, following criticism from London Mayor Sir Sadiq Khan, who proposed more taxes on the larger vehicles, often referred to as “Chelsea tractors”, because of perceived risks.
Rejecting those claims, Walliser described the debate as politically driven, saying all vehicles should meet stricter standards to regulate the safety of pedestrians and cyclists regardless of size.
Despite current pressures, Bentley remains committed to its long-term transformation, electrification, product development and efficiency as key pillars of its future strategy. However, recent results and job cuts underline an immediate reality: even prestigious car brands are being forced to adapt quickly in an increasingly uncertain global market.
