Lotus has announced it plans to cut 550 jobs across its UK operations, including its manufacturing plant in Hethel, Norfolk, as the Geely-owned company tries to offset persistent losses.
Lotus blamed uncertainty in the global automotive landscape, citing “rapid changes in global policies including tariffs” for the cuts, which it said would affect all departments.
The cuts would mean around 40% of the 1300 people currently working for Lotus in the UK would lose their jobs.
The company has been hit hard by muted demand for electric vehicles at the luxury end of the automotive market, after betting its expansion on electric ‘lifestyle’ models such as the Eletre SUV and Emeya saloon.
Lotus sales fell 42% in the first quarter of the year, marking the first significant decline since Geely rolled out the new range of Lotus cars to supplement the brand's traditional sports cars.
“The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed,” the company said in a statement.
The news comes after the firm announced 270 job losses in April, specifically impacting Hethel.
Lotus reiterated that its Hethel site is safe despite the job cuts. “The brand remains fully committed to the UK,” it said in the statement. “Norfolk will remain the home of Lotus' sports car, motorsports and engineering consulting operations.”
Lotus said it plans to diversify its business model for Hethel, including looking to manufacture cars for other brands. Outgoing Lotus Europe boss Matt Windle told Autocar in May that one possibility could be the forthcoming Polestar 6 electric roadster. Windle has since been ousted in favour of Chinese executive Mao Jingbo.
Mao will become the fourth executive in under two years with oversight of Lotus’s UK and European operations. Windle took over from Dan Balmer in April after the former Aston Martin Executive lasted less than a year in the role. His predecessor, former Volvo executive Mike Johnstone, left in August 2024.
Geely bought the Lotus in 2017 from Malaysia’s Proton but has yet to see a return on the its £2billion investment. Lotus posted a net loss of $183 million in the first quarter while debts increased to $3.3 billion. Lotus will report its second quarter results on 29 August.
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