Supercar manufacturer McLaren is reportedly laying off 1,200 employees as part of a restructuring plan amid the coronavirus pandemic.

The layoffs represent about 25% of the automaker’s workforce and come with a $145 million spending cap on its Formula 1 race team for 2021, CNBC reported. McLaren will reportedly reduce redundancies across its global applied, automotive, and racing business units, in addition to making cuts to its support and back-office departments.

“We deeply regret the impact that this restructure will have on all our people but especially those whose jobs may be affected,” Paul Walsh, executive chairman of McLaren Group, said in a statement (via CNBC).

“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 now have no other choice but to reduce the size of the workforce,” he added.

McLaren said it has been “severely” impacted by the COVID-19 crisis as motorsports events have been canceled and production shutdown, along with reduced retail sales and technology demands that have pinched its overall revenue, the news outlet said.

McLaren shut down its Woking, U.K. plant in March and furloughed a portion of its workers as the coronavirus pandemic took hold. The company has also raised about $365 million in additional funding and is now looking to secure another $394 million in the form of a bond from J.P. Morgan, Car and Driver reported.

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