McLaren have confirmed that they intend to lay off 1200 members of staff, including the Formula 1, from across the entire group.
The McLaren Group is set to lay off some 1200 members of staff from across the organisation, in a bid to reduce their costs in the wake of the coronavirus pandemic.
This figure of 1200 equates to around 25% of the total workforce of the McLaren Group, and will see redundancies shared across the road car division, McLaren Applied Technologies and the Formula 1 team.
In April, McLaren were the first of the Formula 1 teams to announce their decision to furlough staff from the F1 side as COVID-19 started to spread. Along with the furlough prominent team members, including Lando Norris and Carlos Sainz, volunteered for pay cuts to allow McLaren to weather the storm.
Confirming the decision to Sky Sports F1, McLaren executive chairman Paul Walsh said: “[This is] undoubtedly a challenging time for our company, and particularly our people, but especially those whose jobs may be affected”.
With F1 set to introduce a stringent budget cap in 2021, it’s likely that many of the larger F1 teams will be forced to cut staff as a requirement to cut their costs. The budget cap will exclude the salaries of the race drivers, and the three highest-paid personnel on the team (such as management or technical staff).
Ferrari are trying to find a way to ensure all their staff remain employed despite the budget cap, by swapping current F1 members over to the roadcar division, as well as confirming they are interested in exploring an entry into the IndyCar series.
Fortunately, the McLaren team and Group overall are in largely good financial health – the team in particular signed several new sponsors over the 2019/2020 winter break as a result of their resurgent form in 2019. Most of the McLaren Group’s revenue comes from the road car side of the business, with the F1 team accounting for under a quarter of the Group’s earnings.
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