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British sportscar manufacturer Lotus is set to cut 550 jobs at its UK headquarters.

The BBC reports that Lotus has 1,300 workers at its site in Hethel, near Wymondham in Norfolk. The company said the decision followed "a review of Lotus Cars' business objectives in line with the current market conditions".

Lotus, famous for its luxury sportscars and electric vehicles, was founded in the early 1950s by engineer Colin Chapman and has been based in Hethel since the 1960s.

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In a statement issued today to the BBC, the company said: "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.

"The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus' sports car, motorsports and engineering consulting operations.

"It is actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing."

South Norfolk MP Ben Goldsborough said: "Terrible news today in terms of the 550 jobs lost but the worst case scenario has been avoided which is a complete and utter closure of Lotus UK.

"This is a punch in the stomach for every single person that has just heard this news this morning."

Daniel Elmer, leader of the council, said: "We will continue to work with Lotus, but our priority now must be the people who are losing their jobs, and we will be working with the county council to put in place support packages.

"We will also be talking to the government to see how they can help us in ensuring that there is a future for this iconic brand in South Norfolk."

It comes after Lotus denied that it was closing its UK factory in June this year, after Donald Trump announced a new raft of US tariffs. The car brand temporarily paused its production in Hethel amid broader challenges in the UK automotive industry.

Meanwhile, in more car news, Jaguar Land Rover revealed plans in July to axe up to 500 management jobs in the UK. At the time, the company said the job cuts will impact around 1.5% of its UK workforce.