In a letter to staff, chief executive Dany Bahar said there was a "need to reduce headcount in a number of areas."
Lotus recently failed to achieve investment from the UK Government’s Regional Growth Fund (RGF) in order to built their new cars. As a result, cars like the Esprit might be built somewhere outside the UK as a result of the Government’s decline. Back in January, the British automaker tried to get a £27,5 million loan that was necessary for the construction of a new factory where the new concept cars should have been manufactured.
"Following this decision Group Lotus is currently exploring all available options including the possibility of submitting an updated bid for round two of the RGF, which is set to close on July 1," said a statement from Lotus.
The £1.4 billion fund was set up this year to help private sector businesses create sustainable jobs. Other car manufacturers, like Nissan and Jaguar Land Rover, have secured cash to help them expand.
“You come across employers who will keep the number of redundancies below 100 to have a period of 30 rather than 90 days. You might say that is a bit sneaky but it is structuring your decisions to comply with legal requirements," said Geoffrey Mead, employment partner at Eversheds.
Under UK regulations, employers shedding 100 or more jobs must start consulting with staff representatives at least 90 days before any dismissals take effect. Those cutting between 20 and 99 staff only need to take 30 days.
"As a 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," a Lotus spokesman said.
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