Bentley to cut hundreds of jobs amid market struggles, but one shift in its strategy is raising bigger concerns

Bentley is cutting 275 jobs across its UK operations as it navigates what it calls a challenging global market environment. As detailed by The Guardian, the cuts affect about 6% of its 4,600 employees, with around 150 permanent office-based roles impacted.

The company also said it will not fill vacant positions or replace departing staff as part of efforts to secure long-term competitiveness. The move follows a sharp financial decline, with annual operating profit falling 42% to €216 million in 2025, despite Bentley remaining profitable for a seventh straight year.

Bentley attributed the downturn to several pressures, including US tariffs, foreign exchange shifts, and weaker demand in China. Decisions made by its parent company Volkswagen also contributed to the company’s financial strain.

The strategy shift is raising questions

Chief executive Frank-Steffen Walliser said the company is making difficult decisions to remain competitive and financially resilient. The restructuring comes as automakers adjust to broader global pressures, including Strait of Hormuz disruption affecting energy and shipping costs.

Bentley is preparing to launch its first fully electric model later this year, described as an urban SUV. At the same time, it is delaying its broader electrification timeline, now planning to continue selling internal combustion engine vehicles until 2035.

The company will also continue offering plug-in hybrid models beyond that date, marking a notable shift from its earlier targets. The adjustment reflects softer demand for fully electric luxury vehicles, particularly among high-end buyers.

Walliser has previously acknowledged limited appetite for EVs within Bentley’s customer base. That trend is mirrored across the luxury segment, where oil tanker escort uncertainty continues to weigh on broader market sentiment.

Other high-end manufacturers are making similar moves. Aston Martin has announced workforce reductions, while Porsche and Lamborghini have both scaled back or adjusted their electrification strategies.

Industry leaders say that while electric vehicles offer performance benefits such as rapid acceleration, they do not fully replicate the experience of traditional engines. Some executives have pointed to customer preference for the sound and feel of combustion engines as a factor shaping future product plans.