McLaren F1 drivers take pay cut, staff furloughed

McLaren has become the first Formula 1 team to place its staff on furlough during the coronavirus crisis with drivers Carlos Sainz and Lando Norris taking a pay cut.

Some members of McLaren’s workforce will now observe an enforced period of absence from the team, while those who remain at work will have their salaries reduced. Sainz and Norris agreed to take the same pay reduction as the other members of staff.

The pay cuts apply across all employees who have not been furloughed, including CEO Zak Brown and other senior members of McLaren's management team. 

F1 teams are discussing how best to protect themselves amid the ongoing COVID-19 pandemic, with concerns rising over how teams will be affected financially by the uncertainty caused.

McLaren has subsequently decided to act by becoming the first team to take steps in a bid to protect staff jobs in the short-term.

While McLaren did not disclose the exact number of staff that had been furloughed, the team confirmed to Crash.net that it had started the process across the company.

“The McLaren Group is temporarily furloughing a number of employees as part of wider cost-cutting measures due to the impact of the Covid-19 pandemic on its business,” a McLaren spokesperson said.

“These measures are focused on protecting jobs in the short-term to ensure our employees return to full-time work as the economy recovers.”

The move comes after the UK government recently introduced a coronavirus job retention scheme that allows companies to claim a grant covering 80 percent of the wages of a furloughed worker up to £2,500 a month.

No other UK-based team has announced similar measures, with all seven British teams currently responding to a government call to help develop and manufacture life-saving medical devices including ventilators amid a shortage of key equipment.

Teams are currently observing a flexible three-week shutdown period due to the hiatus caused by the coronavirus pandemic, which has resulted in a delayed start to the 2020 season, with the opening eight races either being postponed or cancelled.

It is not yet clear when the campaign will be able to get underway, though F1 officials still hope to be able to stage a 15-18 round world championship.