The McLaren Group has announced that it will cut 1,200 jobs as a result of the COVID-19 pandemic, with around 70 expected to be lost from its Formula 1 team.
McLaren was the first F1 team to take advantage of the United Kingdom’s job retention scheme, furloughing many staff when income levels dropped dramatically. The supercar manufacturer has taken a further hit due to the lack of new car sales during the first half of 2020, leaving the company assessing options to raise over $300 million to help it through the crisis.
However, Sky News reports that the plan to raise those funds by securing loans against historic cars has run into trouble due to existing agreements, and McLaren has now confirmed significant redundancies will be made, with sources stating cuts to the F1 team relate to the budget cap that will come into force in seventh months’ time.
“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 program as part of a wider business plan to ensure its long-term future success,” a McLaren statement read.
“Subject to employee consultation, the proposed restructure is expected to result in around 1,200 redundancies across the Group’s Applied, Automotive, and Racing businesses, as well as support and back office functions.”
Despite the cuts to the F1 team, RACER understands that there will be no impact on McLaren’s IndyCar project.