Currently reading: McLaren to axe 1200 jobs amid restructure
Woking firm cites Covid-19 pandemic and imminent Formula 1 cost cap as key reasons behind decision
Rachel Burgess
News
3 mins read
26 May 2020

McLaren has announced 1200 job losses across its automotive, racing and technology businesses, as a result of the ongoing impact of the Covid-19 pandemic and the cost cap being introduced for the 2021 Formula 1 season.

McLaren said it has commenced “a proposed restructure programme as part of a wider business plan to ensure its long term future success”. 

The proposed restructure, subject to employee consultation, is expected to result in around 1200 redundancies across the group’s Applied, Automotive, and Racing divisions, as well as support and back office functions. The number accounts for almost a third of McLaren's 4000-strong workforce. More details on which areas will be most affected won't be clear until employee consultations have been completed.

McLaren said that it, like many others, has been severely affected by the pandemic, citing the cancellation of motorsport events, the suspension of manufacturing and the lack of car sales globally, plus reduced demand for technology solutions, having led to a sudden impact on revenue.

In a statement, McLaren 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."

McLaren Group executive chairman Paul Walsh said: "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. McLaren Applied has also already refocused to strategically prioritise proven, high-growth revenue streams.

"We have already invested in developing a new lightweight, hybrid vehicle architecture that will commence series production at the end of this year with the first deliveries to customers now due in early 2021.

"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."

Walsh continued: "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."

F1 teams recently agreed to impose a budget cap of $145 million (£119m) from next season onwards, with that figure decreasing on a sliding scale to $135m (£108m) for 2023-2025. That compares to initial plans for a $175m budget cap for 2021, with the substantially lower figure intented to help keep the sport sustainable following the Covid-19 crisis.

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A reduction in staffing levels for F1 teams was an inevitable result of the cap, which doesn't include the salaries of drivers and senior team staff or marketing and hospitality outlay.

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Comments
12

26 May 2020

Telling us how McLaren were going places in F1. Today they are making 1,200 redundant. Talk about being played for fools, Autocar!

26 May 2020

[quote=LucyP]

Telling us how McLaren were going places in F1. Today they are making 1,200 redundant. Talk about being played for fools, Autocar!

[/quote They are one of the many who will come forward with cash flow problems, Autocar has nothing to do with it, they report what they hear, not fictious nonsense like you get online.

26 May 2020

But the last couple of years, it felt like there was no end to the introduction and eager purchase of expensive hi-end cars and specials. And the automotive press did everything to sustain that image. No critique whatsoever, as long as the journalists were able to enjoy themselves speeding, slipping and sliding those cars. Now that dream is over. And IMO we haven't seen nothing yet. There's gonna be heartache. 

26 May 2020

Who'd have thought it eh? almost 1/4 of the workforce at McLaren to go and dare I say it's just the begining of many redundancies in motor sector, and not once is the 'B' word mentioned.

 

26 May 2020

Shut up, Scotty. This has nothing to do with Brexit; if it had been, McLaren would have said so. You don't half talk some crap.

26 May 2020

 Autocar are car mag, they report on what they think we'd like to know about, what do think all these car surveys we all from time to time fill in are for?, Autocar will read them and find out what is topical and try and report it, if manufacturers are asked if they can supply at demo car, a car mg isn't going to say no, what your suggesting is they are in pockets of certain brands, and I don't think that's what you want, I've read Autocar when it was two Mags, and I've read a few others, American ones included, I'm reading because I like to read about cars, and, yes, I've had a flick through in the shop, if there was nothing in it would read, I didn't buy it, maybe you shouldn't visit here if you don't like it.

26 May 2020
Not looking good for these companees is it , first jaguar and land rover , now McClaren , all going under!?! Reel bad news. Chinky virus did the damage

27 May 2020

Chunky virus?

Lol!

What an ignorant Cee you next Tuesday you are.

This started happening way before covid19 came along you twat.

27 May 2020
Chunky!?!! is that a new one mate?! Yer post aint making sense mate I wont be seeing you next tuesday dont even no you , ,blimey!!!

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