The announcement, made internally on 28 August, arrives during yet another period of transition for the brand, which is contending with falling global deliveries, geopolitical headwinds, and an evolving ownership structure within the Geely Group.

In a statement, Lotus said the decision followed a business review “in line with the current market conditions,” adding that the move was necessary “to enable Lotus Cars to operate with a flexible and agile business model” and to “secure a sustainable future for the company.” Given Hethel currently employs around 1,300 people, the proposed cuts represent a substantial contraction of the site’s workforce.

The announcement coincided with the release of Lotus Technology Inc.’s unaudited financial results for the first half of 2025. The company delivered just under 2,820 vehicles during the period – a 43% drop compared to the same time last year. Sports car volumes, which include the Hethel-built Emira and the Evija hypercar, fell more sharply, down 64% to 891 units. The second quarter proved particularly tough: only 240 sports cars were delivered between April and June, compared to 1,354 over the same stretch in 2024.

Lotus can lay some of the blame on the door of the White House, amid ongoing uncertainty surrounding President Donald Trump’s tariff policy. Deliveries to North America were paused during the second quarter – though Lotus confirmed they resumed in July. Even so, only 430 vehicles were delivered to the region in the first half of 2025, down from 1,278 the year prior.

Across the Channel, the picture is just as bleak. European deliveries slipped to 858 units, while ‘rest of the world’ shipments dropped by nearly 90%. China was the only market to offer any growth, with sales rising by around 140 vehicles – the region now accounts for 50% of all Lotus deliveries. Given these current trends and the fact the Eletre and Emeya are already manufactured in China, speculation will no doubt continue to surround the future of Hethel.

Sadly, it’s clear something has to give. Reported financial revenue fell by 45% to $218 million in the first half, incurring a net loss of $313 million. While these figures actually represent a 32% improvement on the previous year, gross margin contracted from 12.8% to 8.2%. Lotus has introduced new cost control measures, but overall profitability remains a challenge – adjusted EBITDA came in at –$240 million, a clear sign the manufacturer still has some way to go.

The restructuring news follows continued uncertainty over the role of Matt Windle, CEO of Lotus Cars Europe. A long-serving executive who has spent nearly nine years at Lotus across a variety of senior roles, a statement early this month stated Windle was taking a personal leave of absence. The Financial Times, however, is reporting a permanent departure. Running the company in his absence are Matt Nice, Executive Director of Corporate Office at Group Lotus, and Mao Jingbo, Chief Strategy Office of Lotus Technology. 

Lotus Technology is in the process of acquiring full ownership of Lotus Cars from its previous shareholders. Both Geely and Etika Automotive exercised put options earlier this year, requiring Lotus Technology to purchase their remaining shares. Once finalised in late 2025, the deal will consolidate all Lotus-branded operations under a single corporate structure, however the move appears to consolidate power in Wuhan.

While the restructuring plan has been presented as part of a broader strategy to adapt to changing market conditions, it signals further turmoil at Hethel during a challenging time for the brand – it was only in November last year when an initial 200 cuts were made to the workforce. 

Further afield, Polestar – another Geely-backed European marque – has lost money every year since its 2018 debut, with Volvo recently offloading most of its stake back to their common parent. It’s a reminder that Lotus isn’t the only vulnerable manufacturer caught in shifting trade winds: even Porsche has recently shelved plans to develop its own battery technology.

Nevertheless, with sportscar volumes under pressure and EV production centred overseas, Hethel’s role as a manufacturing site within the wider group remains more uncertain than ever.