The McLaren Group to Layoff 1,200 Workers due to Coronavirus
Posted on 05/27/2020
The McLaren Group out of Surrey, U.K., is laying off 1,200 workers. This equates to a quarter of the company that owns the McLaren Racing Formula 1 automotive team. Mumtalakat, the sovereign wealth fund of Bahrain, owns 56.40% of The McLaren Group. McLaren was hit hard by the pandemic, an inability to race or hold events with crowds, and a drop in retail demand. The budget cap, or cost cap in Formula 1 would result in an upcoming spending reduction down to US$ 145 million, down US$ 30 million from current numbers. Paul Walsh, who was confirmed as Executive Chairman in March 2020, wrote that “we have worked hard to avoid” the layoffs, but “we now have no other choice.” Walsh is hopeful, writing: “We plan to emerge as an efficient, sustainable business with a clear course for returning to growth.” U.K. auto maker Rolls Royce is also pursuing layoffs, disbanding 9,000 staff primarily in Britain, but also in Singapore and Germany.
Keywords: Mumtalakat Holding.