Supercar giant McLaren today announced it would cut 1,200 jobs across all of its operations due to the combination of the coronavirus pandemic and the new F1 price cap.
The redundancies, which were first reported by Sky, will account for about a quarter of the Surrey-based firm’s workforce of 4,000.
Jobs will be cut across the group’s applied, automotive and racing businesses, as well as its support and back office functions.
The company is the latest car giant to be forced into making mass redundancies by the pandemic, which has shuttered factories and showrooms around the world.
Last week it was reported that McLaren was contemplating borrowing £275m against its collection of classic cars and its iconic Woking headquarters.
In a statement, the firm said that the cancellation of motorsport, the suspension of manufacturing and retail operations and the reduced need for technological solutions.
Group chairman Paul Walsh said: “We now have no other choice but to reduce the size of our workforce”.
He added: ‘We deeply regret the impact the restructure will have on all our of 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”.
Boris Johnson’s decision to allow two Grand Prixs to take place at Silverstone race course in July has provided a little respite for the firm, although the decision to cut the price cap for F1 teams from $175m to $145m was always likely to require restructuring the firm.
The news after a dire weekend for UK car manufacturers, with Jaguar Land Rover reported to be in talks with the government over a rescue package and Aston Martin announcing the departure of its chief executive.