The Lotus Evora 4414 plug-in got the nod of approval from the auto engineering world, but that wasn't enough to keep it from financial issues.

Just four years ago, the future for Lotus appeared bright with plans for a burgeoning product portfolio bolstered by enthusiastic management; however, those efforts appear to have failed as the company plans to cut as much as a quarter of its workforce.

The company announced plans today to reorganize the company and terminate as many as 325 of its 1,215 employees worldwide. Part of the restructuring will see the company trying to do more with less as a result of the job losses.

“We understand the concerns that this proposal will create,” said Jean-Marc Gales, chief executive officer of Group Lotus, in a statement. “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.”

The company, which makes the Elise, Evora and Exige sports cars, is launching a 45-day consultation process. The move is somewhat surprising as recent media reports suggested that Gales was looking to mimic Porsche’s recent product portfolio additions of a four-door sedan and an SUV to go with its three-car line-up.

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The rumors about a company in trouble have been swirling around Lotus for the last couple of years. Mounting debts and inconsistent car sales combined to create a recipe for financial disaster, after the company stormed into the Paris Motor Show in 2010 hyping five new vehicles and a new ownership group.

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In 2012, the company delayed the product introductions as it battled lawsuits and tax issues. Unpaid suppliers, due a reported $40 million, sued Lotus’ owner, Malaysian-based DRB-Hicom. Dany Bahar, the company’s ousted CEO, also sued alleging wrongful termination and sought for $10.6 million. During that time it asked the British government for some time to catch up on tax debts.

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Nonetheless, despite its many problems, DRB insisted it is ready to stand behind Lotus and hired consultants Ernst & Young and Rothschild to help it work out a financial turnaround plan. Founded in 1952 by the legendary racer and sports car designer Colin Chapman, Lotus Cars has been a financial basket case for most of its otherwise illustrious existence.

“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.”