News - Lotus
Lotus to lose a quarter of staff in restructure
A proposed restructure by sportscar-maker Lotus could see 325 jobs go globally
19 Sep 2014
GROUP Lotus may cut a quarter of its workforce in a worldwide restructure proposal announced by the company’s chief executive officer Jean-Marc Gales.
The Malaysian-owned British brand said in a statement the restructure may result in the loss of 325 jobs, but added that it was needed to reshape the business and reduce costs.
Lotus employs 1251 globally, 1032 of which are based in Norfolk in the United Kingdom where the company has it headquarters.
“The company wants to ensure that it has the right organisational structure in place to achieve its business goals and to build a strong, sustainable future,” the statement said.
“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.
“Group Lotus intends to redeploy staff wherever possible and will look for ways to retain specific skills and knowledge within the business, despite the proposed cuts.
"It also proposes to recruit into key roles, to help achieve the best possible structure and skill base.” Mr Gales, the former head of PSA Peugeot Citroen who was appointed chief executive officer of Group Lotus in May, said he regrets the impact this will have on his staff.
“We understand the concerns that this proposal will create,” he said.
“We deeply regret the potential impact any reshaping of the business may have on our employees and their families.
“We have worked very hard to avoid the need to make the proposal, 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.” GoAuto is awaiting comment from Lotus Australia and New Zealand's distributor, Ateco Automotive, as to how the restructure may affect the local arm of the business.
In July last year the future of Lotus looked bright after its new owners DRB-Hicom released a three-year investment program with an injection of an undisclosed amount of money into the struggling brand.
In 2013 the Malaysian government sold its 42.7 per cent stake in Lotus’s parent company Proton which was then acquired by DRB-Hicom.
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