Lotus to Cut 550 Jobs at UK Headquarters Amid Tariff Trouble

Lotus is letting go of a chunk of its workforce

Legendary British sports car outfit Lotus is reported to be making significant job cuts as it navigates a challenging sales environment under the ownership of Chinese automotive giant Geely.

According to reports by both the BBC and Sky News, the 'simplify and add lightness' brand is making 550 cuts at its Hethel, Norfolk headquarters in the United Kingdom out of the facility's 1,300 employees. In a statement, the automaker noted that the move is best in order for the company to continue amid a rapidly changing environment, adding that the decision followed "a review of Lotus Cars' business objectives in line with the current market conditions".

"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," it said. "The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus sports car, motorsports, and engineering consulting operations."

Sales are slumping at the brand

Lotus is scheduled to release its unaudited financial results for the first half of 2025 on August 29, 2025, but the latest sales data indicate that the brand's sales have been on a downward trend. According to the numbers, the 1,274 units it moved from January to March 2025 (Q1 2025) reflects a 42% YoY sales dip, including a 52% dip in its sports cars.

The Lotus brand generated total revenue of $93 million during Q1 2025 and saw an operating loss of $103 million, a net loss of $183 million, and adjusted earnings (EBITDA) reflecting a loss of $136 million.

The moves follow plans in February to lay off up to 270 people at its Hethel manufacturing facility and headquarters. In its statement, the company said that it is "actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing."

Latest move is a "punch in the stomach," says MP

Local politicians have expressed their frustration. The Labour Member of Parliament for South Norfolk, Ben Goldsborough, described this news as a "punch in the stomach," but added that “the worst case scenario has been avoided, which is a complete and utter closure of Lotus UK."

On a more local level, Daniel Elmer, the Conservative leader at South Norfolk Council, said that the local government "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. 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."

In a statement, a spokesperson for the UK government's Department for Business and Trade told the outlet that they "recognise carmakers such as Lotus have been facing significant long-term challenges, and we know this announcement will be concerning for workers and their families," adding that ministers supported the car industry with a new industrial strategy to reduce energy prices and a favorable trade deal with the U.S.

Final thoughts

It should be noted that Lotus isn't alone in its struggles. Porsche has also taken a significant hit from U.S. tariffs and industry challenges, including struggles in the electric vehicle market, tightening carbon-emissions regulations in key markets like the EU, and sales challenges in China.

In an interview with CNBC, Lamborghini CEO Stephan Winkelmann said that the uncertainty around tariffs has caused even its wealthiest buyers to think twice about their "fun" purchases, noting: “They are millionaires or billionaires for a reason, so they know what they’re doing and why they’re doing things. For us, free trade is the right approach. We all know that is what we want. But then there is the reality, and we have to deal with complexity, since we are in business. We are ready to face whatever comes.”