Aston Martin has disclosed that it plans to slash 500 jobs as the sports-car maker attempts to bring its cost base into line with decreased production levels.

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The job-cut announcement on Thursday comes a week after Aston Martin confirmed that Tobias Moers, head of Mercedes-AMG, would become Chief Executive on Aug. 1, replacing Andy Palmer. The reductions amount to about 20 per cent of the company’s workforce.

Aston Martin said the job losses reflected lower than planned production volumes and improved productivity across the business. An employee and trade union consultation process will begin in the coming days.

The automaker’s share price has plummeted since listing in October 2018. Last month it posted a deep first-quarter loss after sales dropped by almost a third due to the impact of the coronavirus outbreak.

“The measures announced today will right-size the organizational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability,” it said.

Aston Martin said its first SUV, the DBX, which is key to boost volumes and appeal to new buyers including more women, remains on track for deliveries in the summer and has a strong order book.

Aston Martin is also reducing costs and removing noncritical expenditure in other areas, including contractor numbers, site footprint, marketing and travel.

Aston Martin is reducing the workforce just two months after Canadian billionaire Lawrence Stroll led a 536 million-pound capital infusion that was meant to rescue the debt-laden company.

Reuters and Bloomberg contributed to this report