Coronavirus impact: McLaren plans to lay off 1200 employees

KUALA LUMPUR: The impact of coronavirus pandemic on the world economy is very harsh. With thousands of businesses running in losses, people are losing their jobs all around the world. It is hard for everyone to weather this storm. 

Amid all this, the supercar manufacturer, McLaren is also in big trouble. Earlier in April, the company made an announcement of putting its employees on furlough, and now it plans to lay off 1,200 employees, which comprises a total of 25% of its workforce.

This decision is going to affect the several divisions of the company, including McLaren Automotive, McLaren Racing, and McLaren Applied Technologies.

McLaren currently employees about 4,000 people across its road car and Formula 1 divisions. The decision of laying off comes as a part of the automaker’s major restructuring plan, which majorly impacts the employees of the United Kingdom.

Talking about the Formula One team, it consists of 800 employees dedicated to the act of racing. Out of these, the firm intends to layoff only 70 employees according to the current plan. While the departments which are involved in the supercar manufacturing and technology development will lose around one-third workforce. 

The pandemic has badly hit the company, as it led to the suspension of its production and retail activities, cancellation of motorsports events, and a deep fall in demand.

Paul Walsh, executive chairman of McLaren Group stated, “We deeply regret the impact that this restructure will have on all our people but especially those whose jobs may be affected.”

“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 the 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,” Walsh further added.

Before McLaren, Rolls Royce has also disclosed its plans to lay off 9000 employees out of 52000.

Source: BBC

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