Up to 550 jobs are to be cut across Lotus’s UK operations, with its Warwickshire engineering division among the sites affected.
The majority of losses are expected at the company’s headquarters in Hethel, near Norwich, which employs most of Lotus’s 1,300 staff.
Its base at Wellesbourne in Warwickshire, however, is also included in the consultation.
A company spokesperson said the cuts will be spread across the business rather than targeting any one division and affected staff will be able to apply for other roles within Lotus.
The car maker said it is “actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing”, while also planning greater integration with its global operations.
A statement said: “The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed. We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.”
Lotus said the cuts also reflect plans to draw more heavily on resources from across its wider global group.
The company intends to increase collaboration and resource-sharing between its operations worldwide.
This comes shortly after Lotus Technology confirmed plans to acquire 100% equity in Lotus UK in 2025, consolidating all parts of the business under one structure.