McLaren to Cut 1,200 Jobs Including F1 Team Roles

Supercar manufacturer and Formula 1 team McLaren have announced they will be cutting 1,200 jobs under a proposed restructuring program as it handles the impact of the COVID-19 pandemic and impending F1 cost cap.

British supercar maker McLaren currently employs around 4,000 staff although in a sign of the times, are looking to cut almost a quarter of their workforce as they navigate the effects of the COVID-19 pandemic to their business.

In a statement made by the company McLaren chairman Paul Walsh, he noted they had been “severely affected” by the crisis and had worked hard to cut costs and avoid layoffs but unfortunately “we now have no other choice but to reduce the size of our workforce.”

“We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected. It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business.

“But we now have no other 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.

“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” he continued.

Both the British automaker operations at Woking Surrey, and the group’s Formula 1 team will be impacted with layoffs affecting the applied technologies, automotive and racing divisions. Temporary factory closures brought on by the COVID-19 pandemic, along with empty showrooms due to “stay at home” instructions and canceled events, have all contributed to the squeeze McLaren has been feeling.

McLaren’s Formula 1 operations are also expected to lose around 70 staff out of the current 800 strong work-force although this decision is said to be affected more so by the new Formula 1 cost cap reductions that will come into play for the 2021 season.

The McLaren group had previously requested a £150m loan from the UK government and also tried to raise emergency funds by mortgaging its headquarters and historic car collection but were unsuccessful at the time due to a disagreement with shareholders over the bond collateral.

McLaren’s existing shareholders have however rallied and raised an additional £300m equity to support the long-term strategy of the brand.