Britain's prominent sportscar manufacturer, Lotus, has announced significant job cuts at its UK headquarters, attributing the move largely to the impact of global policy changes, particularly President Trump's controversial tariffs. This news comes as the company also reported substantial financial losses, recording a staggering £195 million in costs during the first half of 2025.

The restructuring involves axing more than 500 jobs from its factory and HQ at Hethel near Wymondham, Norfolk, effectively sacking approximately half of the 1,300-strong workforce. The consultation process for these job losses has already been initiated and the shocking move is expected to be finalized in December, with up to 500 workers facing redundancy. Despite the significant cuts, South Norfolk MP Ben Goldsborough confirmed that 550 jobs will remain at Hethel, safeguarding essential skills and livelihoods in the community.

The financial distress is further evidenced by a sharp decline in sales, with Lotus selling a total of 2,813 cars in the first six months of 2025 – a 43 percent drop compared to the same period in 2024. While half of these sales were recorded in China, deliveries to North America plummeted steeply following the introduction of President Trump's tariffs, directly impacting the UK automotive industry. Lotus Chief Financial Officer, Daxue Wang, noted a 35 percent quarter-on-quarter revenue growth in Q2 due to upgraded models ramping up in China, but this was insufficient to offset the overall losses.

Lotus, which is owned by Chinese giant Geely, emphasized that these job losses are part of a major restructuring effort deemed "necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment." The firm aims to enhance efficiency and ensure global competitiveness, exploring strategic options and increasing integration across the wider Lotus group. Despite fears earlier this year that the firm might move production overseas, Business Secretary Jonathan Reynolds was reassured of Lotus's commitment to the UK, with Norfolk remaining the home of its sports car, motorsports, and engineering consulting operations.

The announcement has sparked a wave of concern among local officials. South Norfolk MP Ben Goldsborough described it as a "very difficult day" for affected families, pledging support for the workers. He also highlighted the avoidance of a "worst-case scenario" – the complete closure of the factory. Council leader Daniel Elmer expressed disappointment and called on the government to act, stating, "we must now hear from the government about what they are planning to do to protect jobs and support our manufacturing businesses" in light of the difficult global situation for car manufacturers and American tariffs.

Lotus, a company with a rich history, was founded in London in the 1950s by legendary engineer Colin Chapman and moved to Norfolk in 1966. It has been manufacturing sportscars since 1952 and enjoyed significant success in racing, with Jim Clark winning F1 championships in a Lotus in 1963 and 1965. The firm has faced hardship in recent months, holding emergency talks with the government earlier this year to address its challenges.