British carmaker McLaren has announced a cut of 1,200 jobs, including from its Formula One team, under a proposed restructuring programme to counter the coronavirus pandemic.
The cuts will take place across McLaren's three divisions: racing, automotive and applied technology.
The news comes ahead of F1 introducing a $145 million budget cap to control spending in the post-pandemic world from 2021 and beyond.
Paul Walsh, executive chairman of the McLaren Group, said: "McLaren Racing has been a proponent of the introduction in 2021 of the new Formula One budget cap, which will create a sustainable financial basis for the teams and lead to a more competitive sport.
"While this will have a significant impact on the shape and size of our F1 team, we will now begin to take the necessary measures to be ready to run at the cap from 2021 onwards, in order to challenge again for race wins and championships in the future."
The 2020 F1 season is yet to start, with the first 10 races of the season either postponed or cancelled because of COVID-19.
The coronavirus pandemic has suspended manufacturing and retail activities around the world and the reduced demand for technology solutions have led to a sudden impact on the group's revenue-generating activities, the company added.
"It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business. But we have no other choice but to reduce the size of our workforce," Walsh said.
The job cuts represent more than a quarter of the group's workforce of just over 4,000, according to Sky News, which first reported the news.