A 25% Reduction in Workforce
The McLaren Group hasn’t been having a great time. COVID-19 has caused a significant drop in revenue and that has forced the company to make some tough decisions. The company announced it will cut 25 percent of its workforce due to the present situation, according to EVO.
That 25 percent reduction in staff means that around 1,200 employees will lose their jobs. It will hit all areas of the business including Automotive, Racing, and Applied divisions.
“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 a return to growth” said Paul Walsh, executive chairman, McLaren.
While the supercar business is struggling, the bigger hit for McLaren is the delayed start to the Formula 1 season and the postponement of the Formula E championships. Mclaren’s Applied division is the sole battery supplier to Formula E, which makes up for a significant portion of the Group’s finances.
The 1,200 person reduction in staff should help McLaren manage its revenue and survive beyond the COVID-19 pandemic and subsequent economic downturn, but it’s unclear what will happen in the future at this time.