Bentley to cut 6% of workforce as it faces tough global conditions

Bentley Motors will cut around 6% of its global workforce, as the luxury carmaker responds to falling profits, weaker demand and a challenging global market environment.

The Volkswagen-owned brand said it plans to reduce about 275 roles in the UK, partly through redundancies and by not filling vacant positions, as it seeks to protect long-term competitiveness. The company employs roughly 4,600 people, primarily at its manufacturing site in Crewe.

The move follows a sharp decline in financial performance. Bentley’s operating profit fell 42% to €216 million in 2025, reflecting pressure from multiple external factors, including tariffs, currency fluctuations and slowing sales in China, according to the company’s latest disclosures, reported The Guardian. 

Profit pressure and global headwinds

The carmaker attributed the decline to a combination of geopolitical and market factors. US tariffs and foreign exchange movements weighed on margins, while demand in China — a key market for luxury vehicles — softened.

According to Reuters, global luxury carmakers have been facing similar pressures, as economic uncertainty and shifting consumer preferences impact high-end vehicle sales.

Despite the profit drop, Bentley said it has now recorded seven consecutive years of profitability, underlining the resilience of its business model even as conditions tighten.

Chief executive Frank-Steffen Walliser said the company was taking “difficult decisions” to ensure long-term sustainability. He added that the restructuring would help Bentley remain financially resilient and strategically focused.

EV transition meets cautious demand

The workforce reduction comes as Bentley prepares to launch its first fully electric model, an “urban SUV”, later this year. The company has positioned electrification as central to its long-term strategy, but acknowledged that customer demand for electric vehicles in the luxury segment remains uneven.

Bentley has already pushed back its plan to go fully electric, extending the timeline for internal combustion engines and confirming it will continue to offer plug-in hybrids beyond 2035.

Industry trends suggest this is not unique. According to Reuters, several luxury automakers have moderated their EV ambitions as demand among high-end buyers has not grown as quickly as expected.

Broader industry shift

Bentley’s decision mirrors actions across the premium automotive sector. Aston Martin recently announced plans to cut around 20% of its workforce to manage costs, while other Volkswagen Group brands have also adjusted production and investment strategies.

At the same time, Bentley reported a 5% decline in vehicle deliveries in 2025. However, this was partially offset by higher demand for bespoke customisation, which continues to support margins.

The Bentayga SUV remains the company’s best-selling model, reflecting sustained demand for luxury utility vehicles even as overall volumes soften.

Looking ahead

Bentley’s restructuring underscores a broader recalibration underway in the automotive industry, where companies are balancing cost discipline, electrification investments and uncertain demand.

As the transition to electric vehicles accelerates unevenly across markets, manufacturers face the dual challenge of investing in future technologies while maintaining profitability in the present.

For Bentley, the immediate priority is stabilising margins and aligning its workforce with evolving business needs. The longer-term test will be whether it can translate its electric ambitions into sustained demand in a segment that has so far shown caution towards change.