Lotus could lay off a total of 325 people as part of a restructuring program, a number which represents just over a quarter of the 1,215 employees worldwide. The restructuring program is part of efforts to build a "strong, sustainable future", according to a press statement sent out yesterday.
"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. 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," it added.
"We understand the concerns that this proposal will create. 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. Once the reshaping has been undertaken, and with its strong and experienced management team, Lotus should be a leaner, more competitive organization," said Lotus CEO Jean-Marc Gales in the statement.
Gales was joined Lotus as CEO in May 2014 from his previous gig as CEO of the European Association of Automotive Suppliers (CLEPA) since 2012. Prior to CLEPA, he was made president of both Automobiles Peugeot and Automobiles Citroen in 2009. Gales also previously held senior posts at Daimler, General Motors, Fiat and Volkswagen.
Lotus also hired former Kia Europe executive Jean-Charles Lievens to develop the automaker's sales network in the southern European region, and former Millbrook Proving Ground CEO Miguel Fragoso as Engineering Director.
Lotus Cars Malaysia recently revised prices for its whole line-up in Malaysia and as a result it registered its best ever monthly sales this month. The Elise S is now priced at RM280k, down from RM332k, while the Evora S's price tag was dropped from RM567k to RM476k. Global sales are on the uptrend as well, with Lotus sales increasing 31% worldwide (505 units up from 386 units) for the first financial quarter of 2014.
There has also been speculation that Lotus was working on a sedan and an SUV to supplement their sports cars "Porsche style", but this has not been confirmed officially by the company.
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