The British sports car manufacturer Lotus announced it will lay off up to 200 employees in the UK.
The company which is owned by Chinese auto group Geely, is making its second round of job cuts this year.
Streamlining Operations
The cuts follow previous rounds in 2023, reflecting the company’s efforts to streamline operations and respond to changing market demands.
The layoffs will impact the company’s Hethel division, which oversees the production of the Emira sports car, the all-electric Evija hypercar, and the development of the Type 135 project — a future electric replacement for the Emira and Elise.
In a statement to Autocar, Lotus said it will work to reassign or retrain employees wherever possible to retain essential skills and knowledge within the company, according to Boosted.
“These proposed organizational changes at Lotus Cars are necessary to ensure that we have the right structure to support sustainable operations,” Lotus said.
After reviewing resources against market demand, the company stated that it will be “optimizing internal processes and structures” to meet long-term business goals.
A Struggling Industry
The auto industry is facing a turbulent period, with shifting demand, economic challenges, and rapid transitions to electric vehicles (EVs) affecting even longstanding brands like Lotus.
Rising production costs, increased competition from electric car manufacturers, and a global decline in luxury car sales have all pressured the market.
Many companies are cutting costs to stay competitive, with major automakers like Ford and General Motors also making significant layoffs and restructuring plans this year.
The latest round of layoffs is expected to affect up to 200 positions across Lotus’ UK operations.
Employees were informed of the job risks earlier this week. At the close of 2023, Lotus employed around 1,700 people in the UK, meaning the current reductions represent a significant restructuring for the company.
Despite the changes, Lotus confirmed that its Evija hypercar project, introduced by the Advanced Performance team, will continue as planned.
However, Simon Lane, who previously led the Advanced Performance division, recently left the company.
Lotus also stated that it still aims to launch its electric sports car, the Type 135, by 2027. The recent unveiling of the Theory 1 concept model provides a glimpse into the brand’s future direction, but the challenging market raises questions about how sustainable this vision will be.
