Due to the ongoing impact of the COVID-19 pandemic, as well as the new Formula 1 cost cap to be introduced for the 2021 season, global luxury automotive and motorsport firm McLaren Group has commenced a proposed restructure programme as part of a wider business plan to ensure its long-term future success.
The proposed restructure is expected to result in around 1,200 redundancies across McLaren’s Applied, Automotive, and Racing businesses, as well as support and back-office functions.
Like many other businesses, McLaren has been severely affected by the current pandemic. The cancellation of motorsport events, the suspension of manufacturing and retail activities around the world and reduced demand for technology solutions have all led to a sudden impact on the group.
Paul Walsh, Executive Chairman, 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. McLaren Applied has also already refocused to strategically prioritise proven, high-growth revenue streams.”