Lotus announced plans to lay off up to 550 jobs in the UK, totaling about 40% of the UK workforce, aiming to ensure the company’s long-term survival.
The Norfolk sports automaker, a majority-owned by China group Geely, said the cuts were “a necessary condition to ensure a sustainable future in today’s rapidly growing automotive environment”, citing the impact of declining sales, on the transition to electric vehicles and the increase in global tariff pressures.
The news comes after months of uncertainty about Lotus’ 59-year-old Hethel website, which prompted Commerce Secretary Jonathan Reynolds to hold talks with Geely earlier this summer.
Despite the scale of unemployment, Lotus insists that its UK business will remain at the heart of the brand. The company said in a statement:
“The brand remains entirely committed to the UK and Norfolk will remain the home of Lotus sports car, racing and engineering consulting businesses.”
The automaker said the changes will be “more flexible” by aligning production with demand and “critical to strengthen our future competitiveness in the market”.
Geely acquired a 51% stake in Lotus in 2017 as part of a broader deal with Malaysian maker Proton. Since then, the Chinese Group has invested more than £3 billion in the brand. But the shift to advanced electric models has proven difficult, with tariffs in the United States adding pressure.
Since its debut in February 2024, shares of Lotus Technology, a Nasdaq listed business unit, have fallen to 84%, and have fallen by 2% in early Thursday trading. Geely is increasingly focusing on new production centers in Wuhan, China.
South Norfolk labor MP Ben Goldsborough described the decision as a “hard day for lotus and many families” but stressed the avoidance of the “worst case” of a complete factory closure.
Daniel Elmer, the director of the South Norfolk Commission, said Lotus has been an integral part of South Norfolk since 1966, and committed to working with the company and affected employees.
A government spokesman acknowledged the challenges facing British automakers and said the Labor industrial strategy launched in June was designed to cut manufacturers’ energy costs. He also pointed to the recent UK trade agreement, which he said “save thousands of jobs in the UK”.
Reorganization is in the midst of leadership turmoil. Matt Windle, CEO of Europe’s Lotus Automobile business, left his leave for “personal reasons” in just four months.
Although Lotus insists that Norfolk will remain the basis for its global sports car, the scale of the loss of this work underscores the difficulties faced by the British auto industry due to adapting to the power transition and volatile global trade conditions.
