McLaren Group has confirmed that it is planning to reduce its headcount by over a quarter, in part due to the coronavirus pandemic.
The Group operates its Applied, Automotive and Racing divisions, with the Formula 1 team a crucial component of the latter section.
Around 1,200 of the 4,000 personnel will be made redundant, with reports suggesting that approximately 70 of these will come from the Formula 1 team.
McLaren is one of several Formula 1 teams to have furloughed staff during the current pandemic while factories have remained shut as part of cost-saving measures.
McLaren Group is due to release its Q1 results during a conference call on Thursday.
Several leading Formula 1 teams are set to repurpose some staff on account of the impending budget cap, set to be fixed at $145m per year for 2021.
In a statement issued on Tuesday McLaren confirmed that: “Due to the ongoing impact of the Covid-19 pandemic, as well as the new Formula 1 cost cap to be introduced for the 2021 season, luxury automotive, motorsport and technology company McLaren Group has commenced a proposed restructure programme as part of a wider business plan to ensure its long-term future success.”
McLaren Chairman Paul Walsh commented that there was “no choice but to reduce the size of our workforce.
“This is undoubtedly a challenging time for our company, and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth.”
Discussion about this post