Luxury car manufacturer Lotus has confirmed that it will be slashing 550 jobs from its UK workforce, citing "global policies".
In a statement, the Hethel-based manufacturer confirmed that it would be cutting hundreds of jobs, despite previously confirming that it would not be closing its UK factory.
Lotus stated that it was "actively exploring options in the global market" amid reports that it could look to open a factory in the United States.
The statement clarified that the job losses were necessary following a review of Lotus Cars' business objectives and "current market conditions".
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Lotus cited global market conditions and tariffs as a reason for the job losses | LOTUSLotus added: "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.
"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 is actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing."
The company, which is based at Hethel, near Wymondham in South Norfolk, currently has around 1,300 workers at the headquarters.
Lotus confirmed that it was committed to its operations in the UK, despite rumours suggesting it could move production abroad | LOTUSCommenting on the decision to cut the jobs, South Norfolk Council said it would do all it could to "help and support" the impacted workers.
Daniel Elmer, leader of the council, said it would work alongside Lotus to prioritise those who have lost their jobs and introduce "support packages".
Mr Elmer confirmed: "We will also be talking to the government to see how they can help us in ensuring that there is a future for this iconic brand in South Norfolk."
Lotus underwent a previous round of restructuring in April, in which 270 jobs were cut across the company, as it blamed "volatile market conditions".
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Lotus confirmed it was 'actively exploring strategic options' | LOTUS At the time, Lotus and many other luxury manufacturers were dealing with the heavy impact of President Donald Trump's automotive tariffs.
The US President announced that any foreign cars or vehicle parts would face a 25 per cent tariff when imported to the United States as Mr Trump looked to secure the future of American manufacturing.
The UK managed to avoid the brunt of these tariffs with Prime Minister Keir Starmer signed a trade deal with the US to reduce the rates to an effective rate of 10 per cent.
Reacting to the most recent job cuts from Lotus, Ben Goldsborough, MP for South Norfolk, told the BBC that it was a "very bad day" for his constituency.
Lotus cut 270 jobs in April earlier this year, citing global trade difficulties
| LOTUSThe Labour MP, who has been in his seat since 2024, said: "Terrible news today in terms of the 550 jobs lost but the worst case scenario has been avoided which is a complete and utter closure of Lotus UK," he said.
"This is a punch in the stomach for every single person that has just heard this news this morning."
Last year, the brand announced its intention to ditch its goal to be an all-electric brand by 2028, maintaining instead that it would move forward with "the best power technology available".
Feng Qinfeng, CEO of Lotus, said the automaker would consider the best option for the brand and its customers, whether it is "pure gasoline, pure electric, hybrid or range-extended [EV]".
The Lotus Emira is one of the brand's flagship models
| LOTUSA Government spokesperson told GB News that carmakers like Lotus have been facing "long-term challenges".
It acknowledged that the announcement would be a major concern for workers and their families.
They added: "This government inherited some of the highest industrial energy prices in the world, while businesses most impacted by global tariffs have faced increased pressures.
"That’s why we've taken decisive action in our modern Industrial Strategy to reduce energy costs, given certainty to vehicle manufacturers through the ZEV mandate, and secured landmark trade deals, including our deal with the US that saved thousands of jobs in Britain."