Lotus Cars To Axe 99 Staff At Headquarters

Sports car firm Lotus is shedding almost 100 staff at its Norfolk headquarters, it has confirmed.

The firm is making up to 99 back-office employees redundant at its base in Hethel, where it has around 1,200 staff.

Lotus chief executive Dany Bahar has issued a memo to affected staff in which he states there is "a need to reduce headcount in a number of areas of the business."

Lotus carried out an efficiency review which, the letter said, had "highlighted the need for increased improvement in both cost and productivity."

It states: "It is with regret that we have to enter into a redundancy process.

"However, it is imperative that we realise cost savings and efficiency improvements this year to help ensure the success of Group Lotus in the future.

"Whilst we understand that this news will be disturbing to many of you, we ask that you continue to focus on your role within the organisation and delivering to the best of your ability."

The company hopes to have identified the precise number of employees affected by June 17. It has invited applications for voluntary redundancy.

Group Lotus is a subsidiary of Malaysian business Proton Holdings, which bought a majority stake in 1996, and is itself a parent company which owns car manufacturer Lotus Cars and Lotus Engineering.

The only area not affected by the current redundancy process is Lotus Engineering, the consultancy arm of Group Lotus.

In April, Group Lotus had missed out on a £27.5m loan from the government it would have used to fund an expansion to its Hethel manufacturing facility.

Lotus had warned before the loan application to the Regional Growth Fund's £450m pot that failure to secure the funds could see it shift production of its new models, including 2013's Esprit, overseas.

In a statement, Lotus said: "As an important and natural part of Group Lotus evolution, we are undertaking an efficiency review.

"Part of this review is a planned restructuring of back-office functions which regrettably will lead to the loss of some positions ahead of a recruitment programme in the near future.

"Going forward we have the means to create new jobs as we move towards production in line with our business plan."