British automaker Lotus is planning to reduce its workforce by 550 employees at its headquarters in the UK. According to the BBC, Lotus currently employs 1,300 workers at its facility in Hethel, near Wymondham in Norfolk. The company stated that the decision to downsize was made after a thorough assessment of Lotus Cars’ business goals in light of prevailing market conditions.
Lotus, renowned for its high-end sports cars and electric vehicles, was established in the early 1950s by engineer Colin Chapman and has been situated in Hethel since the 1960s. In a recent communication with the BBC, the company emphasized the necessity of these measures to ensure a sustainable future for the business amidst the rapidly changing automotive landscape, marked by global policy uncertainties and tariff fluctuations.
The company affirmed its unwavering commitment to the UK, with Norfolk serving as the hub for Lotus’ sports car production, motorsports, and engineering consultancy services. Lotus is actively exploring avenues for future growth and diversification of its business model, including potential collaborations for third-party manufacturing.
In response to the job cuts, South Norfolk MP Ben Goldsborough expressed dismay over the loss of 550 positions but acknowledged that the situation could have been worse if Lotus had faced complete closure. Meanwhile, Daniel Elmer, council leader, highlighted the importance of supporting the affected employees and collaborating with local authorities to provide assistance packages.
The Government also weighed in on the situation, acknowledging the challenges faced by automakers like Lotus and assuring support for affected workers and their families. The government emphasized ongoing efforts to address energy costs, provide regulatory clarity through initiatives like the ZEV mandate, and secure trade agreements to safeguard British jobs.
Earlier this year, Lotus refuted rumors of its UK factory closure following the announcement of new US tariffs by Donald Trump. The company had temporarily halted production at its Hethel plant amid broader industry challenges in the UK automotive sector.