McLaren undergoes restructuring: 1,200 employees are laid off

The coronavirus affects many companies and car manufacturers are no exception to the rule. For example, McLaren announces on Tuesday that it will lay off 1,200 redundant staff throughout the company.

Big loss for McLaren

The step McLaren has to say is a consequence of the coronavirus, which has brought much of the work to a standstill. McLaren has with the cars, technology and racing teams three important pillars in the organization, where many people will be fired in the short term. McLaren's Formula 1 team is not going to get away with it.

Reportedly, 70 people have to be fired within the McLaren Formula 1 team. Now that is not a big problem, as the budget cap will have to be cut in the long run, but the impact will be big on the company as a whole. The executive chairman of the McLaren Group is disappointed with the situation.

McLaren up to profit

''We hate the impact that restructuring will have on all our people, but especially those who will lose their jobs. It is of course a situation we would have liked to have avoided, but now we don't have a choice. It's a tough time for our company and if we want to survive we have to take this step,'' Paul Walsh says in a statement.

The budget cap in Formula 1 then comes at the right time for McLaren. ''The budget cap in F1 will ensure a more sustainable future for the sport and that has a significant impact on our F1 team. We must now do everything possible to meet the budget cap and eventually win races again'', concludes Walsh.