British sports car maker Lotus has announced plans to cut up to 270 jobs in the UK as it battles what it calls “volatile and evolving market conditions,” including the fallout from new US import tariffs on UK-manufactured vehicles.
The Norfolk-based automaker confirmed the proposed job losses will primarily affect its flagship Hethel production site, where the Emira coupé and Evija electric hypercar are built. Other UK facilities — including its R&D centre in Warwick, the Advanced Structures facility at Norwich Airport, and its London headquarters — will not be impacted by the restructuring.
“This restructuring is vital to enhance our competitiveness and secure long-term sustainability,” the company said in a statement shared with Business Matters. The company cited “shifting consumer demand for sports cars” and the recent 25% import duty on UK-built cars imposed by President Donald Trump’s administration as major factors influencing the decision.
Lotus recently suspended US-bound shipments of the Emira in response to the tariffs, which form part of a wider protectionist trade policy targeting automotive imports. The company said it is also exploring closer collaboration with its Chinese parent company Geely, which owns several other automotive brands including Volvo, Polestar, and LEVC, to streamline operations and boost efficiency.
This marks the second round of significant job cuts at Lotus within the past six months. In late 2023, the company announced up to 200 redundancies, also attributing the move to market uncertainty and restructuring needs. If the latest proposal goes ahead, nearly 470 roles — almost 40% of Lotus’s UK workforce, based on LinkedIn estimates — will have been lost in under a year.
Despite the cuts, Lotus’s European Managing Director Dan Balmer reaffirmed the company’s commitment to its Hethel base, emphasizing its historical significance and the strategic value of its FIA-approved test track. “Having that as our sports car base is important,” he said.
The job losses come as Lotus grapples with broader industry headwinds, particularly in the electric vehicle (EV) market. Its China-based division, Lotus Technology, was recently hit by an even steeper tariff hike — with US duties on Chinese-made EVs jumping from 100% to 145%. In response, the price of the Lotus Eletre SUV in the US has more than doubled, now costing over $220,000 compared to under £100,000 in the UK.
Despite the pricing surge, Lotus Technology has not announced any production changes or layoffs at its Wuhan facility, which manufactures both the Eletre and the upcoming Emeya SUV.
The latest developments underscore the mounting pressure on premium and EV automakers navigating supply chain issues, geopolitical uncertainty, and increasingly fragmented global markets. With the US — previously Lotus’s largest market — becoming less viable for exports, the company faces a critical juncture as it seeks to realign its strategy and preserve its iconic British brand.
