Lotus announces job losses amid market challenges and US tariffs

Lotus Cars is cutting up to 270 jobs across its UK operations, citing “volatile and evolving market conditions,” including the impact of new US tariffs.

The company, headquartered in Hethel, Norfolk, confirmed that it is facing significant challenges following the introduction of a 25% import tax on cars and car parts from the UK into the United States.

The new tariffs, imposed under US President Donald Trump’s administration, have added to the pressures already facing the sports car manufacturer.

Lotus’s UK-built vehicles, including the Emira coupé and the Evija hypercar, are now subject to these higher import fees, which forced the business to suspend Emira shipments to the US earlier this week.

A spokesperson for the company stated, "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars."

While the company remains "committed to the UK," it said the proposed restructuring will involve closer collaboration with its largest shareholder and technology partner Geely Holding Group.

The job cuts come after a series of previous reductions, including the loss of 94 jobs in November and additional cuts to its two Norfolk factories in January.

Lotus has dedicated £500 million to the development of its factories and shifting production towards electric vehicles, including electric SUVs and sports cars.