Hundreds of individuals employed with McLaren F1 have been placed on leave following the COVID-19 pandemic. This was announced on April 1st, with it being confirmed that Lando Norris and Carlos Sainz will be receiving a reduced payment for the 2020 season. Considering that a significant percentage of these individuals’ jobs have been negated with the pandemic, it isn’t surprising that Zac Brown would make this decision.
Those that continue to work with McLaren F1 during the pandemic will receive reduced salaries. Lando Norris and Carlos Sainz will maintain regular payments for their training efforts, which is accomplished indoors with home-based gym equipment and virtual SIM Racers. McLaren F1 is the 1st team to announce the reduced salaries and temporary layoffs, with multiple other outfits expected to follow within the next several days. Numerous organisations are determining the best way to protect their workforces and financial reserves during this unprecedented period.
McLaren didn’t disclose the volume of workers that were laid off. However, their workforce includes thousands of individuals across Britain and Spain. That’s why its speculated that upwards of 60% of their workforce had been laid off. The official announcement noted that this decision was implemented for cost-cutting measures. Laying off these employees will ultimately protect their jobs over the long-term. Those still working at the McLaren factories are designated towards the development of medical equipment for the UK’s National Health Service.
Retention Funds
The United Kingdom Government announced last week that corporations would receive specialized grants that cover 80% of paid wages until the maximum amount of £2,500.00 is acquired. This enables McLaren F1 to support their drivers with the additional 20% of paid wages without losing a substantial sum of reserve funds.
There are several teams in Formula One that operate within Great Britain. All several are responding to the UK Government call to manufacture medical equipment for the NHS. However, a large percentage of the workforce is still self-isolating from home. It’ll be inevitable for teams like Mercedes and Red Bull to announce similar measures by April 5th. It should be noted that the manufacturing of medical equipment will continue until the F1 2020 Season is resumed.