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|British Formula 1 team and supercar maker McLaren said it plans to cut 1,200 jobs after the coronavirus crisis hit sales. (AFP/BEN STANSALL)|
"We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected," the group's executive chairman Paul Walsh said in a statement.
Walsh said the cuts "will have a significant impact on the shape and size of our F1 team".
British media reports said about 70 of the racing team's 800 jobs will be eliminated by the restructuring plan.
"It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of business," Walsh said.
"But we now have no further choice but to reduce the size of our workforce."
McLaren is a grand name in British racing that has produced cars featured in James Bond movies and bred winners of Formula 1 races since the 1960s.
But the group's racing division has struggled in recent years.
McLaren is now lobbying Formula 1 to introduce a budget cap next year that could reduce the gap between less well-funded teams and runaway leaders such as Mercedes and Ferrari.
The Formula 1 season has been suspended and is not eyeing a return until July.
Orders for McLaren's supercars have also fallen steeply.
Walsh said the group has invested in developing "a new lightweight, hybrid vehicle architecture" that will enter serial production at the end of the year.