Lotus to cut 40% of UK workforce but pledges to keep Norfolk factory open

"Lotus has announced plans to cut up to 550 jobs in the UK, amounting to around 40 per cent of its British workforce, in a major restructuring aimed at securing the company's long-term survival. The Norfolk-based sports carmaker, majority-owned by Chinese group Geely, said the cuts were "necessary to secure a sustainable future in today's rapidly evolving automotive environment," citing the impact of falling sales, the transition to electric vehicles and mounting global tariff pressures."

"Despite the scale of the job losses, Lotus insisted that its UK operations would remain central to the brand. In a statement, the company said: "The brand remains fully committed to the UK, and Norfolk will remain the home of Lotus' sports car, motorsports and engineering consulting operations." The carmaker said the changes would allow it to operate "more flexibly" by aligning production with demand and would be "vital to enhancing our future competitiveness in the market"."

"Geely acquired a 51 per cent stake in Lotus in 2017 as part of a wider deal with Malaysian manufacturer Proton. Since then, the Chinese group has invested more than £3 billion into the marque. However, the shift to premium electric models has proved difficult, with tariffs in the US adding further strain. Shares in Lotus Technology, the Nasdaq-listed division of the business, have plunged 84 per cent since their debut in February 2024,"

Lotus will cut up to 550 UK jobs, about 40% of its British workforce, as part of a major restructuring to secure long-term survival. Falling sales, the shift to electric vehicles and rising global tariff pressures are cited as drivers. The Hethel site uncertainty prompted government talks with Geely. UK operations and Norfolk will remain central for sports cars, motorsports and engineering consulting. The restructuring aims to align production with demand and improve competitiveness. Geely invested over £3 billion since acquiring a 51% stake in 2017, while shares in Lotus Technology have plunged since its Nasdaq debut.

Read at Business Matters