Britain's iconic sportscar manufacturer, Lotus, is implementing a significant restructuring that includes the axing of more than 500 jobs from its UK headquarters at Hethel, near Wymondham, Norfolk. This constitutes approximately half of the factory's 1,300-strong workforce. The decision, expected to be finalized in December, has been largely attributed to "rapid changes in global policies including tariffs," with President Trump's controversial tariffs specifically cited as a major contributing factor.

The job cuts come alongside severe financial challenges for the Chinese giant Geely-owned firm. Lotus recorded a substantial £195 million in losses during the first half of 2025. This period also saw a significant drop in sales, with only 2,813 cars sold – a 43 percent decrease compared to the first six months of 2024. While deliveries of upgraded models in China showed a 35 percent quarter-on-quarter revenue growth, sales to North America plummeted following the tariffs, further exacerbating the company's difficulties.

A spokeswoman for Lotus stated that these measures are "necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment." A consultation process has been initiated to determine the exact number of roles to be cut. Despite earlier fears that Lotus might move production to the US or Poland, Business Secretary Jonathan Reynolds was reassured that the manufacturer remains committed to its UK operations, with Norfolk continuing to be the hub for its sports car, motorsports, and engineering consulting activities. The firm had previously explored "strategic options to enhance efficiency and ensure global competitiveness."

The announcement has sparked concern within the local community. South Norfolk MP Ben Goldsborough described it as a "very difficult day for Lotus and for many families," but acknowledged that the worst-case scenario of factory closure had been avoided, with 550 jobs remaining at Hethel. South Norfolk Council leader Daniel Elmer expressed disappointment, highlighting Lotus's integral role in the region since 1966 and calling for government intervention to protect manufacturing jobs from the impact of global tariffs. Lotus, founded in London in the 1950s by Colin Chapman and moved to Norfolk in 1966, has a rich history, including Formula 1 championship wins in the 1960s. The company had held emergency talks with the government earlier in the year to address its mounting issues.