McLaren Group to lay off 1200 employees amid restructure

McLaren is to make around 1200 staff redundant across its automotive, technology and racing teams as part of a major restructuring of the business.

McLaren Group to lay off 1200 employees amid restructure

The move has come in the wake of the coronavirus pandemic and the imminent arrival of a cost cap in F1 from next year.

The Woking-based outfit has taken a financial hit from the pandemic, which has affected car sales hard and forced the F1 season to be suspended.

The team announced on Tuesday that it was to begin a consultation period with staff to finalise the steps that would be taken, but a statement said it expected there to be 1200 redundancies across the group.

It is understood that around 70 staff will be cut from the F1's operation, but final details have not been sorted out yet.

Paul Walsh, executive chairman of the McLaren Group said: "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."

Read Also:

F1 teams last week backed plans for a $145 million budget cap to be introduced from the start of next year, with a glidepath for it to be reduced over the forthcoming seasons.

That move will force the bigger teams to cut back on staff, something with McLaren is now pushing on with.

Walsh added: "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.

 

shares
comments
Top 10: Ugliest race-winning F1 cars

Previous article

Top 10: Ugliest race-winning F1 cars

Next article

Racing Life after F1: Giancarlo Fisichella

Racing Life after F1: Giancarlo Fisichella
Load comments
The squandered potential of a 70s F1 underdog Prime

The squandered potential of a 70s F1 underdog

A podium finisher in its first outing but then never again, the BRM P201 was a classic case of an opportunity squandered by disorganisation and complacency, says Stuart Codling.

The other notable Monza escape that F1 should learn from Prime

The other notable Monza escape that F1 should learn from

OPINION: The headlines were dominated by the Italian Grand Prix clash between Max Verstappen and Lewis Hamilton, who had the halo to thank for avoiding potentially serious injury. But two days earlier, Formula 1 had a lucky escape with a Monza pitlane incident that could also have had grave consequences.

Formula 1
Sep 17, 2021
How Monza only added more questions to F1's sprint race conundrum Prime

How Monza only added more questions to F1's sprint race conundrum

With two sprint races under its belt, Formula 1 must now consider its options for them going forward. While they've helped deliver exciting racing on Sundays, the sprints themselves have been somewhat lacking - creating yet another conundrum for F1 to solve...

Formula 1
Sep 16, 2021
Who should Alfa Romeo sign for 2022's F1 season? Prime

Who should Alfa Romeo sign for 2022's F1 season?

OPINION: With Valtteri Bottas already signed up for 2022, all eyes are on the race for the second seat at Alfa Romeo next year. Antonio Giovinazzi is the current incumbent, but faces a tough competition from appealing short and long-term prospects

Formula 1
Sep 15, 2021
The "forced break" that was key to Ricciardo's Monza excellence Prime

The "forced break" that was key to Ricciardo's Monza excellence

OPINION: Daniel Ricciardo has long been considered one of Formula 1's elite drivers. But his struggles at McLaren since switching from Renault for 2021 have been painful to watch at times. Yet he's recovered to banish those memories with a famous Monza win – built on a critically important foundation

Formula 1
Sep 14, 2021
Italian Grand Prix driver ratings Prime

Italian Grand Prix driver ratings

Two drivers produced faultless performances as, for the second year in a row, Monza threw up an unpredictable result that left many to rue what might have been

Formula 1
Sep 13, 2021
Why Ricciardo would have won without Verstappen/Hamilton crash Prime

Why Ricciardo would have won without Verstappen/Hamilton crash

The clash between Max Verstappen and Lewis Hamilton was the major flashpoint the 2021 Italian Grand Prix will be remembered for. Yet by this point, race leader Daniel Ricciardo had already done the hard work that would put him in position to end his and McLaren's lengthy win droughts, on a memorable afternoon in Monza

Formula 1
Sep 13, 2021
Why Italian GP success is on for McLaren even if Verstappen dominates Prime

Why Italian GP success is on for McLaren even if Verstappen dominates

For the second time in 2021, McLaren will line up for the start of a grand prix from the first row. It knows it has the chance of "glory" if things go well for Daniel Ricciardo and Lando Norris at the start of the 2021 Italian Grand Prix, but even if they just maintain their grid positions, signs from the rest of the Monza weekend suggest success is very possible for Formula 1's other orange army

Formula 1
Sep 12, 2021