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.
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.
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.
Source:Independent
