Supercar company McLaren, which has a factory in Rotherham, axes 1,200 due to pandemic

The firm said in a statement the cancellation of motorsport events, suspension of manufacturing and retail activities around the world and reduced demand for technology solutions had hit revenue.

McLaren said the new annual spending cap for Formula One teams also led to the job losses.

The firm has a £50m Composites Technology Centre on the Advanced Manufacturing Park in Rotherham. It is understood some 200 staff work at the site but the firm has not said if they will be affected.

Executive chairman Paul Walsh said: "We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected.

"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 our workforce.

"This is undoubtedly a challenging time for our company, and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth."

Shadow business secretary Ed Miliband said: "This is further devastating news for our manufacturing sector and incredibly worrying for the workers involved.

"The Government loans scheme for large companies is not working when a great British company like McLaren does not get access to finance."

It was reported earlier this month that McLaren is seeking to borrow up to £275 million by mortgaging its Woking headquarters and historic car collection.

A 175 million US dollar (£142 million) cap on race car performance spending was set to be introduced for Formula One next year.

The Rotherham factory makes carbon fibre chassis - or ‘tubs’ - which are shipped to its headquarters in Woking. In November it was hunting for tailors, dressmakers and boatbuilders as part of a recruitment drive to almost triple the workforce in the town from 70 to 200 by early 2020.

The opening of the site in 2018 was attended the by Duke and Duchess of Cambridge.

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