Up to 550 UK jobs to go at carmaker Lotus with tariffs blamed

Up to 550 roles are to be cut across car maker Lotus's UK operations, the company said.

The losses will be made across the business, with no one portion in particular being pared back, a spokesperson said.

A consultation process on the cuts is underway, and those who lose their job will have the opportunity to apply for another Lotus role. The company said it is "actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing".

Most of Lotus's 1,300 employees work at the Norwich headquarters in Hethel, so it is this site which will sustain the greatest losses.

Lotus also operates an engineering division in Wellesbourne, Warwickshire.

Why are the jobs going?

Uncertainty, including from President Trump's tariffs, was cited as the reason for the roles reduction.

"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," a statement read.

"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."

Another reason the cuts are coming is the company's plans to use more resources from Lotus's global business.

"The company plans to increase integration globally across the wider Lotus group and is exploring greater resource sharing and collaboration across its operations", it said.

"This comes on the heels of the recent news Lotus Technology plans to acquire 100% equity interest in Lotus UK in 2025, consolidating all Lotus businesses and operations together."

The former chief executive of Aston Martin, Andy Palmer, told Sky News that, like the rest of the car industry, Lotus had been struggling with Chinese customers moving to domestic electric car brands.

Brand loyalty doesn't apply in the same way when customers are trying out something new, namely electric vehicles, Mr Palmer added.

Lotus also allowed its brand equity to erode by manufacturing SUVs in China at "aspirationally high volumes".

There is optimism from the fact Lotus is known in the industry for its expertise in creating lightweight vehicles, important at a time when electric vehicles need to be aerodynamic and reduce drag.

Lotus said it was "fully committed to the UK".

"Norfolk will remain the home of the Lotus' sports car, motorsports and engineering consulting operations".

(c) Sky News 2025: Up to 550 UK jobs to go at carmaker Lotus with tariffs blamed