Explained: Red Bull made 154 redundancies due to F1 cost cap

The team led by Christian Horner were at the centre of the first scandal since the budget caps came in when, last year, they were found guilty by the FIA of breaching the 2021 cap and were fined.

The difficulties for teams to comply with the new rules have been laid bare by a Motorsport-Total.com report claiming that 154 people were made redundant from Red Bull Racing and Red Bull Technologies between 2020 and 2021. They did not all necessarily work on behalf of the F1 team.

Mercedes’ restructure cost only 59 people their jobs.

Mercedes were left with 300 more employees than Red Bull - because they are reportedly paid less on average.

A Red Bull employee was paid an average of £142,000 ($173,000) in 2021, whereas a Mercedes employee was paid an average of £109,000 (£133,000).

What is the budget cap in 2023?

F1 teams are permitted to spend $135 million in the upcoming season, a reduction of $5m from 2022.

The three highest-earning employees at each team are not included within the budget. Nor are F1 driver salaries.

Red Bull’s punishment could cost them

The sanction imposed for breaking the 2021 cost cap was a $7m fine plus a 10 percent reduction in aero testing time for 2023.

Red Bull “incorrectly interpreted” 13 areas, including staff catering.