What happens next after Lotus job cuts announcement?

A consultation period has begun with affected staff at Hethel

Sports car manufacturer Lotus recently announced it would cut more than a third of its workforce at its UK headquarters in Norfolk, throwing the factory's future into further doubt following months of speculation.

As workers in Hethel, near Wymondham, are offered support packages and a pledge from an MP to find every one of them a new job, what has been the fall-out of the past nine days, and what happens now?

What happened?

Lotus was founded in the 1950s by engineer Colin Chapman and since 1966 has called south Norfolk its home.

It employs 1,300 staff at Hethel, where there has been a fair amount of unease for some time.

In April last year, it announced 270 jobs would go "amid volatile and evolving market conditions including the US tariffs" and since then the company has repeatedly denied suggestions of a move across the pond.

However, it admitted in June it was "actively exploring" options in the global market but remained "committed to the UK".

On 28 August, Lotus confirmed it would be cutting 550 jobs following "a review of Lotus Cars' business objectives in line with the current market conditions".

In a statement, it 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."

What's going on behind the scenes?

Lotus will have been based at Hethel for 60 years next year

The BBC understands the decision followed several months of talks between the owners, the government and local politicians.

As well as the US trade tariffs, the company has blamed a drop in demand internationally for prestige sports cars.

Half-year figures show that Lotus Technology - which plans to acquire 100% equity interest in Lotus UK - saw gross profit drop by 42% to $18m.

European deliveries were down 41% year-on-year (1,459 to 858) and its overall deliveries of supercars (worldwide) had dropped 64% for sportscars year-on-year (2,476 to 891) and down 43% for deliveries of all types.

Matt Windle, head of Lotus Cars Europe, remains at the helm, despite reports circulating since early August that he had stepped down.

What was the immediate reaction?

Ben Goldsborough has been involved in discussions about Lotus for months

Ben Goldsborough, Labour MP for South Norfolk, had been calling for clarity for Lotus workers and said the "terrible news" was a "punch in the stomach" for staff.

"The worst case scenario has been avoided, which is a complete and utter closure of Lotus UK," he added.

The Department for Business and Trade said it recognised carmakers such as Lotus had been facing "significant long-term challenges" and it knew the news would be "concerning" for workers and their families.

South Norfolk Council leader Daniel Elmer responded by saying its priority was the people losing their jobs.

"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," he added.

What help has been offered?

Daniel Elmer said it was vital to keep the automotive skills and expertise in Norfolk

Mr Goldsborough stepped in and said his team would work "full blast" to find jobs for all affected staff - but his government have been called on to do more.

On Friday, South Norfolk Council and the county council announced a support package for workers and families, to help with both the "initial pain" and navigating the future.

The package includes support in hardship and finances, wellbeing, specialist employment advice with CVs and interviews, mentoring, skills, training, and a jobs brokerage service.

It will be available at Lotus and at outreach sites, to ensure privacy.

Mr Elmer - a Conservative - said the two councils had produced the package in a "very short time" and would continue to do all it could, "but we need the government to step up and support both Lotus and the staff who will be losing their jobs".

"At difficult times like this we must put people first and work together to provide the support they need," said Fabian Eagle, Conservative county council cabinet member for economic growth

"It's also vital that we keep the automotive skills and expertise in Norfolk, and we have already started working with local employers to find staff new opportunities."

What happens now?

The councils' taskforce said it would use the time between now and the end of the financial year, when the redundancies were expected, to work with Lotus and its staff and help them navigate their next steps.

Lotus said the consultation period had started, and as such it could not say anything further.

The Department for Business and Trade said: "We recognise carmakers such as Lotus have been facing significant long-term challenges, and we know this announcement will be concerning for workers and their families.

"This government inherited some of the highest industrial energy prices in the world, while businesses most impacted by global tariffs have faced increased pressures.

"That's why we've taken decisive action in our modern Industrial Strategy to reduce energy costs, given certainty to vehicle manufacturers through the zero emission vehicle mandate and secured landmark trade deals, including our deal with the US that saved thousands of jobs in Britain."