British automaker Lotus is planning to reduce its workforce by 550 employees at its headquarters in the UK, according to reports from the BBC. The company, which currently employs 1,300 workers at its site in Hethel, Norfolk, cited the need to align its business goals with the current market conditions as the reason for this decision.
Lotus, renowned for its high-end sports cars and electric vehicles, was established in the early 1950s by engineer Colin Chapman and has been headquartered in Hethel since the 1960s. In a statement provided to the BBC, the company emphasized the necessity of these job cuts to ensure a sustainable future amidst the rapidly changing automotive landscape, influenced by global policy uncertainties like tariffs.
The brand affirmed its ongoing commitment to the UK, with Norfolk remaining the hub for Lotus’ sports car production, motorsports, and engineering consulting activities. Lotus is actively exploring avenues for future growth and diversification of its business model, including potential third-party manufacturing collaborations.
Following the announcement, South Norfolk MP Ben Goldsborough expressed disappointment over the job losses but acknowledged that the scenario of Lotus UK’s complete shutdown had been averted. Local council leader Daniel Elmer highlighted the importance of supporting the affected employees, with plans in place for assistance packages and discussions with the government to secure the future of the iconic brand in the region.
A Government spokesperson addressed the challenges faced by car manufacturers like Lotus, attributing them to factors such as high energy prices and global tariffs. Government initiatives under the Industrial Strategy, including energy cost reductions and trade deals like the US agreement, were mentioned as efforts to support the automotive industry and preserve jobs.
Earlier this year, Lotus refuted rumors of its UK factory closure amid concerns raised by new US tariffs announced by Donald Trump. The company temporarily halted production at its Hethel facility in response to broader industry difficulties in the UK automotive sector.
