F1 staff placed on furlough, bosses take pay cut
Formula 1 has placed half of its staff on furlough as the championship continues to battle the effects of the coronavirus crisis.
Due to the COVID-19 pandemic delaying the start to the season, F1 is facing the prospect of limited income if the 2020 campaign doesn’t take place.
The Canadian Grand Prix is currently scheduled to host the season opening race in June but there are doubts the event will go ahead.
As a result, senior management – including Ross Brawn – are to accept a 20% pay cut, with F1 CEO Chase Carey taking a voluntary reduction in salary.
Three British-based outfits have already announced a number of staff have been put on furlough, as well as their drivers agreeing to a pay cut.
McLaren were the first team on the grid to confirm its furloughing plans, joined this week by Mercedes-powered teams Racing Point and Williams.
Races that have been cancelled amid the virus outbreak will not have to pay a hosting fee, but F1 will still be obliged to pay teams their 2019 prize money.
Since Liberty Media’s takeover from Bernie Ecclestone in 2017 more staff have been employed, with over 400 people based at HQ in London or a the TV compound in Biggin Hill.
Teams are already in talks to find solutions to ease financial pressures such as reducing the 2021 budget cap from $175m to $150m.
McLaren boss Zak Brown has already expressed concern that if F1 doesn’t handle the COVID-19 situation properly four teams could collapse.