Group Lotus has announced a proposed restructuring that may involve the loss of up to 325 jobs – or more than 25% of the global workforce.
The reorganisation is being proposed to reduce costs and ensure the business has “a strong, sustainable future. Regrettably, it is likely that compulsory job losses will be needed to ensure that the company has the right number of people with the right skills”.
The news comes despite recent big sales boosts (aided by attractive new car offers) for the firm, which has also apparently spoken of developing an SUV and a ‘new Lotus Carlton’.
Group Lotus did add that it will redeploy staff where possible and will aim to keep key skills and knowledge within the business. Alongside the job losses, it also plans a recruitment drive for key roles to enhance its stricture.
The aim, said CEO Jean-Marc Gales, is to create a leaner, more competitive company. However, he added, “We understand the concerns that this proposal will create.
“We deeply regret the potential impact any reshaping of the business may have on our employees and their families.” Lotus has tried to avoid this proposal, he added, “but do believe that it is now essential.
“It is in no way a reflection on our employees who have shown nothing but dedication to us and have worked tirelessly to support Lotus.”
Consultations will now begin with staff and workers’ groups to avoid as many job losses as possible and mitigate the impact of any changes deemed necessary.