Formula 1 implements pay cuts, furloughs

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Formula 1 implements pay cuts, furloughs

Formula 1

Formula 1 implements pay cuts, furloughs

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Half of Formula 1’s staff have been put on furlough under the UK Government’s job retention scheme, with senior personnel including CEO Chase Carey taking pay cuts.

RACER understands that around 250 of the 500-strong staff at F1 – which is headquartered in London – have been furloughed, with a number of those specifically working on events and therefore unable to work from home while there is no racing taking place for the foreseeable future.

The job retention scheme allows companies to place their employees on temporary leave during the COVID-19 pandemic, with the government paying 80% of their wages up to £2500 ($3100), provided their jobs are kept open.

Senior staff at F1 are taking a 20% pay cut, but Carey is expected to take a larger cut voluntarily in his role as CEO and chairman. Sources in F1 say they are understanding of the position, with many other UK-based companies and teams having to take similar measures at this stage.

Three teams have already confirmed they have furloughed some staff as well as their drivers taking pay cuts, with McLaren joined by both Williams and Racing Point yesterday.

At present the first race on the 2020 calendar is the Canadian Grand Prix on June 14, although that date is looking increasingly unlikely. With restrictions on travel, the British Grand Prix at Silverstone on July 19 is emerging as a more realistic target as a season-opener as seven of the ten teams are based in the UK. 

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