The latest victim of the coronavirus is McLaren as the company has proposed a restructuring plan designed to ensure its “long-term future success.”
In a note to investors, the company said “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’s revenue generating activities.”
If that wasn’t bad enough, the company is also facing the new Formula 1 cost cap which is slated to be introduced for the 2021 season. Given all of this, McLaren is looking to make cuts across its automotive, motorsport and technology divisions.
Also Read: Jaguar Land Rover Seeking Over $1 Billion In Aid From UK Government
As part of this effort, the company has proposed eliminating around 1,200 jobs. The cuts will target so-called redundancies and come from all three business sectors as well as from their “support and back office functions.”
The company has worked hard to avoid these cuts and McLaren noted they have already “undertaken dramatic cost-saving measures across all areas of the business” and refocused McLaren Applied to prioritize “proven, high-growth revenue streams.”
Despite these efforts, it simply wasn’t enough. As McLaren Group Executive Chairman Paul Walsh explained, “We now have no other choice but to reduce the size of our workforce.” He added, “We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected.”
Thankfully, it’s not all bad news as McLaren noted 765LT deliveries are slated to begin in October and will be followed by the Elva later this year. The company also confirmed their new hybrid architecture will go into production late this year with the first deliveries scheduled for 2021.
