Struggling major carmaker to axe 500 jobs in ‘difficult decision' just 3 months after bombshell merger

The Sun

4 days ago

A MAJOR carmaker is set to axe up to 500 jobs just three months after a shock merger.
Back in April, the merger between a luxury supercar maker and an electric car start-up came as a shock.
The merger between McLaren and Forseven could result in up to 500 job losses as part of a cost reduction process.
It comes after several years of financial difficulty for the supercar company.
After the pandemic it faced near bankruptcy in 2020, leading to significant restructuring.
Sales continued to plummet in 2023, with the merger hoping to restore its financial position.
A spokesperson said that they were proposing "a potential workforce reduction of up to 500 roles across the combined organisation".
They added: "The realignment of roles and responsibilities is a necessary step in preparing for the coming together of our two businesses and will ensure that our operations are streamlined to enable resilience and success over the long term."
The company said they would provide "comprehensive support and guidance to all those affected" while they try to minimise the impact on employees.
"Looking ahead, we remain dedicated to expanding our portfolio of luxury vehicles and delivering the exceptional customer experiences that honour the McLaren legacy," the company said.
A consultation process with its 2,500 employee workforce is already underway according to The Evening Standard.
It reported that roles are expected to be cut in departments like design and engineering, IT, legal and HR.
Jobs that are duplicated across the two companies are most at risk.
The cuts could affect employees at McLaren's main base in Woking, in addition to its Bicester, Leamington and Surrey sites.
McLaren merged with Forseven in April to form McLaren Group Holdings, with Forseven CEO Nick Collins leading.
While McLaren has a long-standing history as a leader in the supercar market, Forseven is still relatively new.
The British start-up includes more than 700 industry professionals who are working to launch a luxury range by 2030.
An announcement on the Forseven website reads: "Forseven has merged with McLaren Automotive with one clear vision: to become a world-beating automotive business."
Abu Dhabi investment company CYVN Holdings is set to finance the new company.
As part of the merger, an estimated 300 roles have been created which could reduce the impact of redundancies.
Jassem Mohamed Bu Ataba Al Zaabi, Chairman of CYVN hopes to redefine the high-performance and luxury sectors.
In a press rele a se announcing the merger, the company said it hoped to "transform McLaren into a high-performing British automotive business on the global stage."
Jassem Al Zaabi said: 'I'm personally committed to making this vision a reality. It isn't just about investing, it is about shaping the future of McLaren as a brand, as a business and its place on the global automotive map.
"We want to - and we will - push boundaries and deliver groundbreaking innovations that drive real progress in the sector.
'This is the start of an exciting new era for McLaren as a car brand and an automotive business."
In addition to McLaren's Automotive business, he also promised to continue working on McLaren Racing's long-term success.
This includes "supporting the team in building on their successes, winning more podiums, and inspiring fans worldwide."
They added that more details about the vision and strategy going forward will be announced later this year.
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