McLaren Group is set to make around 1200 staff redundant across its automotive, technology and racing departments as part of a major business restructuring.
This move is almost certainly part of a cost-saving measure as the firm looks to weather the effects of the pandemic and the arrival of a cost cap in Formula 1 next year.
It had announced on Tuesday that a consultation period had been undertaken with staff to finalise the steps required, though the statement said it is expected that there will be 1200 redundancies across all departments.
Paul Walsh, executive chairman of McLaren Group said in the statement that the move was a difficult, albeit necessary one.
“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.”
Formula 1 teams – McLaren included – backed a $NZ230million budget cap set to be introduced from the start of next year and is set to be reduced over the forthcoming seasons. The move will force teams to cut back on staff.
“McLaren Racing has been a proponent of the introduction in 2021 of the new Formula 1 budget cap which will create a sustainable financial basis for the teams and lead to a more competitive sport.
“While this will have a significant impact on the shape and size of our F1 team, we will now begin to take the necessary measures to be ready to run at the cap from 2021 onwards, in order to challenge again for race wins and championships in the future.”
McLaren’s technology division has already shifted focus to high-growth revenue streams, while it is hoped the company’s road car sales will be boosted by deliveries of a new 765LT supercar in October and the Elva, an ultra-exclusive open-top speedster.