Up to 350 jobs are to be lost at the UK headquarters of sports car maker and engineering consultancy Lotus.

UTV.com said the loss of a major consulting project and the completion of existing work are being blamed for the cutbacks at the Lotus facility at Hethel near Norwich in Norfolk though production of the Elise and Exige sportscar models would not be affected.

Around 1,500 staff are based at Hethel, the report said.

The engineering consultancy side contributes about half of Group Lotus business, in terms of turnover, profits and staff numbers, it added.

A spokesman said plans for a £4 million engineering centre were not affected, UTV.com said.