McLaren Group Ltd. plans to cut about 1,200 jobs to help counter the financial impact of the coronavirus pandemic.
The layoffs will impact the applied technologies, automotive and racing businesses, as well as support and back-office functions, the British supercar maker said in a statement on Tuesday.
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The temporary closure of factories and showrooms, as well as the cancellation of motorsport events, abruptly cut off valuable revenue streams, McLaren said. Having already trimmed costs across the group, management is having to dig deeper for additional savings.
“We now have no other choice but to reduce the size of our workforce," Chairman Paul Walsh said in the statement.
McLaren has struggled in recent months to raise cash after bondholders sought to block plans by the company to raise emergency funds by mortgaging its headquarters and historic-car collection, stating that the site and the classic cars are already pledged as collateral on $700 million of bonds sold in 2017.
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The company, controlled by sovereign wealth fund Bahrain Mumtalakat Holding Co., has had to halt production on account of the coronavirus pandemic, which has also delayed the Formula 1 racing series. Automakers from Daimler AG to Renault SA have cut or scrapped guidance in past weeks because of lockdowns tied to Covid-19.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.