Lotus, a renowned British sportscar manufacturer, is planning to reduce its workforce by 550 employees at its headquarters in the UK.
The BBC has disclosed that Lotus, situated in Hethel near Wymondham, Norfolk, currently employs 1,300 individuals. The company stated that this decision was made following a thorough evaluation of Lotus Cars’ business goals aligned with the existing market conditions.
Founded in the early 1950s by engineer Colin Chapman, Lotus is well-known for its high-end sportscars and electric vehicles. The company has been headquartered in Hethel since the 1960s.
In a recent statement to the BBC, Lotus expressed, “We deem this action necessary to ensure the company’s sustainability in the constantly evolving automotive industry, which faces uncertainties due to rapid global policy changes, including tariffs.”
South Norfolk MP Ben Goldsborough conveyed, “Today’s announcement of 550 job cuts is distressing, but thankfully, the worst-case scenario of Lotus UK’s complete closure has been averted.”
Daniel Elmer, council leader, emphasized the importance of supporting the affected employees and collaborating with the county council to provide assistance packages. Additionally, initiatives will be taken in consultation with the government to secure the future of the iconic Lotus brand in South Norfolk.
A Government spokesperson acknowledged the challenges faced by carmakers like Lotus and highlighted the administration’s efforts to address issues such as high industrial energy costs and global tariffs impacting businesses in the UK.
Earlier this year, Lotus denied rumors of its UK factory closure following the announcement of new US tariffs by Donald Trump. The company had temporarily halted production at the Hethel facility amidst broader challenges within the UK automotive sector.