Famed British automaker Lotus has just announced plans to restructure their organization in order to stay alive. This plan includes the loss of up to 325 jobs, which is a quarter of the Lotus workforce. Lotus thinks this plan is necessary.
Here's the full statement from the automaker:
Group Lotus plc today announced a proposal to restructure its worldwide workforce as a result of the need both to reshape its organisation and to reduce costs. The proposal was made following very careful consideration and may involve the loss of up to 325 jobs.
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. 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.
Jean-Marc Gales, Chief Executive Officer of Group Lotus, said "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."
Group Lotus will now consult with staff and workers' representatives on the proposed changes and on ways and means of avoiding job losses, reducing the number of job losses and mitigating the impact of any changes that are necessary.
Jean-Marc Gales added, "Once the reshaping has been undertaken, and with its strong and experienced management team, Lotus should be a leaner, more competitive organisation, focusing on both producing class-leading sports cars and innovative engineering. We will also build upon the improved sales results seen over the last few months."
Here's to hoping this doesn't mean the end for one of our favorite automakers.