British sports car manufacturer Lotus has announced plans to cut 550 jobs in the UK as part of a major restructuring initiative, while confirming that manufacturing operations will continue at its Hethel facility in Norfolk. This comes during a turbulent period for Lotus, now controlled by Chinese automaker Geely, marked by declining sales and financial pressures. Lotus recently reversed a proposal to shut down the Hethel plant just a day after reports of its potential closure surfaced. The U-turn came following indications that the UK government was prepared to step in with support. Lotus Technology, the US-listed entity set to assume full ownership of the UK arm later this year, described the job reductions as “necessary in order to secure a sustainable future for the company” amid “uncertainty with rapid changes in global policies, including tariffs”. In an effort to reshape its UK operations, Lotus said it was exploring ways to diversify its business, potentially through “third-party manufacturing”. It added: “The brand remains fully committed to the UK, and Norfolk will remain the home of Lotus’s sports car, motorsports, and engineering consulting operations.” South Norfolk Council pledged to “do all it can” to support the 550 employees who will lose their jobs, after the BBC first reported the news. A government spokesperson said: “We recognise carmakers such as Lotus have been facing significant long-term challenges, and we know this announcement will be concerning for workers and their families.”