McLaren became the first Formula 1 team to place their staff on furlough, as drivers Lando Norris and Carlos Sainz volunteered to take pay cuts.
McLaren are currently in the process of contacting their team, which contains 850 staff members. However, core staff will continue to work on reduced pay.
The furlough is expected to start next week with a review set for the end of May.
Lando Norris and Carlos Sainz, who earn over £2.5m between themselves, have reportedly asked their bosses if they could receive a pay cut. Chief executive Zak Brown is voluntarily taking a hit to his wage as well.
A statement by McLaren read: “The McLaren Group is temporarily furloughing a number of employees as part of wider cost-cutting measures due to the impact of the COVID-19 pandemic on its business.”
The rest of the grid are also set to implement cost-saving measures in order to tackle the dilemma of the 2020 season’s shutdown. Racing has been tentatively slated to return in the summer.
Lewis Hamilton is set to have his £40m salary trimmed significantly, with these discussions at a preliminary stage.
The six-time world champion is to be joined by four-time champion Sebastian Vettel, who is reportedly having his £35m wage slashed as well as Ferrari teammate Charles Leclerc, currently on £8m.
The Formula One curtain-raiser in Australia was postponed due to a McLaren team member contracting COVID-19 which led to the British outfit pulling out of the race.
Lewis Hamilton had claimed that the race continuing would be “shocking”.
Races in Asia, in China, Bahrain and Vietnam, slated for between March 20 and April 19 had been postponed with no decision made to whether they will be reinserted into the 2020 calendar.
European races have also taken a hit with May 3’s Dutch Grand Prix postponed as well as May 24’s historic Monaco GP which was cancelled for the first time in 66 years.
The Azerbaijan race has also been cancelled.
- F1 season to be put on hold until 'July at the earliest'
- F1 still hopeful of having 15-18 races this season
- Ecclestone fears for F1 future