Iconic sportscar manufacturer Lotus cuts 550 jobs in the UK

The company has a manufacturing hub in Norfolk

(Getty Images)

Lotus Cars is to cut 550 jobs in the UK - but the sportscar manufacturer insists it remains “fully committed” to building in the UK.

Speculation earlier this year suggested Lotus could close a factory in Norfolk and relocate to the US. However, the firm rejected that and after a review of options across the global market, the carmaker has instead decided on changing their work approach across the business.

That will result in the job losses, but gives a “sustainable future” for the company which, like other car manufacturers, has seen tariff uncertainty and pricing battles impact on profitability and planning.

“Following a review of Lotus Cars business objectives in line with the current market conditions, the company has announced a restructuring proposal, which anticipates a reduction of up to 550 roles across the business in the UK,” said a statement from the company sent to The Independent.

“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.

“We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.”

Daniel Elmer, leader of South Norfolk Council, told the BBC: “We will continue to work with Lotus, but our priority now must be the people who are losing their jobs, and we will be working with the county council to put in place support packages.”

The company also confirmed that the ongoing plan to bring all operations together would see Lotus UK owned entirely by Lotus Technology.

“This proposed restructuring is vital to enhancing our future competitiveness in the market. The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus’ sports car, motorsports and engineering consulting operations,” it said, while adding “third-party manufacturing” was a future possibility.