Group Lotus is planning to cut around 325 jobs, which accounts for a quarter of its workforce, as the company seeks to reduce operating losses.
The company is undergoing an organisational restructuring phase to ensure that it has “the right organizational structure in place to achieve its business goals and to build a strong, sustainable future,” Lotus revealed in a statement issued on Thursday.
Jean-Marc Gales was was appointed as the new CEO in May by DRB-Hicom, one of Malaysia’s biggest industrial conglomerates and owners of Lotus since 2012. Gales is a former head of brands at PSA-Peugeot Citroen and has been tasked with reshaping the company.
The problems with Lotus stem from the financial losses of last year which amounted to £109 million pounds, and £115 million a year before that. On the flip side things are looking a little brighter, sales have risen by 14 percent so far in 2014.
The job losses will hurt Lotus no doubt about it, but it may be necessary medicine to swallow before the wound heals. This isn’t the end of Lotus just yet, its been through many chapters of uncertainty over its illustrious history.
You don’t don’t put a new CEO in place for the purposes of dissolving the company. But if Lotus were a patient, it would be classed as being in a serious but stable condition. The wound looks more serious than it actually is.