LONDON-the British car manufacturer McLaren Group comes up with a restructuring program. This group also includes the Formula, One race teams. The decision is to cut 1200 jobs under the proposed plan. This restructuring is a step against the fallouts from the COVID-19 pandemic. The impact of this decision is expected to fall upon groups related to technology, automotive, and racing sections of the company. This plan was put before us this Tuesday. According to the reports of the company, they have incurred huge losses in the revenue of the company. According to them, the reasons for this are the cancellation of motorsport event, suspension of manufacturing parts, retail activities around the globe, and unfulfillment of other revenue earning activities in due course.
They tell us that they have already taken all cost-cutting measures across all business sections. But they cannot come up to take in huge losses and give into reducing their workforce. This was clarified by Executive chairman Paul Walsh. The job cut is about one-fourth of the current workforce. And they are mainly under Bahrain’s sovereign wealth fund. We must also acknowledge Mclaren to be the first team or company from the Formula on to have their staffs off during April. Thus, the racing team is now lead by only 800 people, with seventy already at their home.
Formula one is also taking steps on the cut costs to help ten teams survive, McLaren is the second most successful team after Ferrari. McLaren is also now into burrowing money against the Working Headquarters and its historic collection of cars.
