Up to 99 jobs are likely to be cut at the Lotus factory in Norfolk, according to the manufacturer of sports and racing cars.
Although the firm has not yet made a public announcement over job losses, workers at the plant in Hethel have been informed about the move.
Company chief executive Dany Bahar wrote to staff saying there is "a need to reduce headcount in a number of areas of the business".
In the letter sent out to the employees, Lotus said that it conducted an efficiency review which "highlighted the need for increased improvement in both cost and productivity".
The letter explained: "It is with regret that we have to enter into a redundancy process. However it is imperative that we realise cost savings and efficiency improvements this year to help ensure the success of Group Lotus in the future.
"Whilst we understand that this news will be disturbing to many of you, we ask that you continue to focus on your role within the organisation and delivering to the best of your ability."
Group Lotus, a subsidiary of Malaysian business Proton Holdings, owns Lotus Cars and Lotus Engineering.
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