Sports car firm Lotus has announced job cuts for the second time in five months, blaming “volatile and evolving market conditions including US tariffs”.The manufacturer, which is based in Hethel in Norfolk, said up to 270 jobs would be lost across the company in the UK, which is believed to be almost a quarter of the workforce.A spokesperson said the US tariffs and “shifting consumer demand for sports cars” were to blame for the latest round of losses.The firm confirmed it would “remain committed to the UK”, saying the restructuring is “vital”.However, industry experts have sounded a sceptical note about the firm’s reasoning for the cuts.Prof David Bailey, of Birmingham Business School, said he believed the job cuts were partly down to US tariffs but said there were other factors to consider.”Trump’s tariffs will have a big impact on the company because 22% of their sales last year were in North America – mainly the United States so clearly that’s a big blow.”But the company has been in lots of trouble in recent years.We’ve seen several rounds of redundancies and it’s been undergoing a painful transition from internal combustion engine to electric cars.So tariffs are part of the story, but there’s other issues at play here.””There are some big questions about whether long-term, production stays at Hethel because Lotus can produce 150,000 cars a year in China,” he said.
“I want to see Lotus production in the UK so keeping production here is going to be absolutely critical going forward.” Owned by Chinese firm Geely, Lotus made significant job cuts in January and November 2024 , saying “evolving market conditions” were the reason.The firm posted losses of £145.1m in 2022, as car sales dropped 200% to just 576 in the year.The following year – the most recent accounts – Lotus sold seven times the volume, 4,332 vehicles, but losses eased only slightly to £128.5m.Last month, US President Donald Trump announced new 25% tariffs on all cars made outside the US, piling pressure on a UK sector already grappling with electric vehicle targets set by the British government.In the wake of President Trump’s announcement of more wide-ranging tariffs on all countries, Coventry-based company Jaguar Land Rover said it would pause all shipments of its British-made cars to the US while it worked out how to adjust to the tariffs.The spokesperson for Lotus said: “Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars.”The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group.”It will look at greater resource sharing and collaboration in technology, engineering, and operations.”Lotus said the cuts were “vital” to ensure the company could remain competitive in the market.Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.
