McLaren is planning to cut over a quarter of its workforce in a restructuring plan forced by sharply lower revenues due to the COVID-19 pandemic hitting both sales and advertising revenues.
The plan for 1,200 redundancies goes across all business units and would mainly impact employees in the UK.
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The Woking-based firm has been hammered by lower sales of its supercars as well as the suspension of motor racing – especially Formula One – due to the coronavirus crisis.
The proposed restructure will impact jobs across its applied, automotive and racing businesses, as well as support and back office roles.
In a statement McLaren said: "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's revenue-generating activities."
The group's executive chairman Paul Walsh said: "We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected.
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By GlobalData"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."
