Luxury car manufacturer Lotus has confirmed that it will be slashing 550 jobs from its UK workforce, citing "global policies".

In a statement, the Hethel-based manufacturer confirmed that it would be cutting hundreds of jobs, despite previously confirming that it would not be closing its UK factory.

Lotus stated that it was "actively exploring options in the global market" amid reports that it could look to open a factory in the United States.

The statement clarified that the job losses were necessary following a review of Lotus Cars' business objectives and "current market conditions".

Lotus confirmed that it was committed to its operations in the UK, despite rumours suggesting it could move production abroad | LOTUS

Lotus added: "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.

"It is actively exploring future growth opportunities to diversify Lotus Cars' business model, including through third-party manufacturing."

The company, which is based at Hethel, near Wymondham in South Norfolk, currently has around 1,300 workers at the headquarters.

Lotus confirmed it was 'actively exploring strategic options' | LOTUS

Commenting on the decision to cut the jobs, South Norfolk Council said it would do all it could to "help and support" the impacted workers.

Daniel Elmer, leader of the council, said it would work alongside Lotus to prioritise those who have lost their jobs and introduce "support packages".

Mr Elmer confirmed: "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."