British sports car maker Lotus is set to lay off 550 employees in the UK, approximately 40% of its 1,300 workforce, as part of a major restructuring effort prompted by declining sales and market challenges.
Lotus, headquartered in Hethel near Wymondham, had earlier dismissed speculation about shutting down its UK facility and relocating production to the United States. Back in June, the company stated it was evaluating international opportunities but reaffirmed its commitment to maintain operations in the UK.
However, in declaring the recent job reductions, Lotus explained that the move stemmed from a strategic reassessment of its business goals, prompted by challenging market dynamics—particularly the impact of complex tariffs on vehicles and raw materials.
Job losses will occur throughout the company, with the Norfolk site—where the main factory and headquarters are located—bearing the greatest impact. The engineering office in Wellesbourne, Warwickshire, will also be affected. A formal consultation process is underway, and employees affected by the cuts will have the opportunity to apply for other roles within Lotus.
The Hethel factory has been idle since mid-May due to a pause in production aimed at addressing supply chain issues and inventory management caused by U.S. tariffs. President Donald Trump imposed a 27.5% tariff on British cars. However, the UK government later negotiated a deal that reduced the tariff to 10% for up to 100,000 UK-made cars annually, roughly matching the country’s total car exports.
Earlier this year, Lotus revealed plans to shift part of its production to the United States in response to import tariffs. In 2024, North America represented one-fifth of the company’s global sales, trailing behind Europe and China.
The automaker has faced declining demand for its electric vehicles, while hybrid models have gained traction in both China and the U.S. As a result, Lotus experienced a 42% drop in sales during the first quarter of 2025 compared to the same period the previous year. Despite this downturn, the company reported a reduced net loss of $280.2 million in Q1 2025—an improvement over the $394.7 million loss recorded in the first quarter of 2024.
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