The 2020 McLaren 600LT SpiderMack Hogan | CNBCThe McLaren Group, which owns the Method 1 crew and supercar maker, has introduced plans to put off 1,200 employees, or roughly 25% of its workforce.The proposed cuts on the firm are a part of a restructuring plan that has been introduced on by the continued affect of Covid-19, and the Method 1 price cap.McLaren mentioned it had been “severely” impacted by the pandemic, including that the cancellation of motorsport occasions, the suspension of producing and retail, and diminished demand for expertise had all hit its income. “We deeply remorse the affect that this restructure could have on all our folks however particularly these whose jobs may be affected,” mentioned Paul Walsh, govt chairman of McLaren Group, in a press release. “It’s a plan of action we have now labored onerous to keep away from, having already undertaken dramatic cost-saving measures throughout all areas of the enterprise. However we now don’t have any different alternative however to scale back the dimensions of the workforce.”The redundancies will likely be made throughout McLaren’s utilized, automotive and racing companies worldwide. Some help and again workplace roles can even be affected. The information comes after Method 1 revealed plans this month to introduce a brand new annual price cap of $145 million for 2021, down from $175 million.McLaren is the newest in a line of producers to announce layoffs on account of the coronavirus disaster. Final week, the UK.’s Rolls Royce introduced it was shedding 9,000 of its 52,000 employees to adapt to the much-smaller aviation market.Disclosure: CNBC has a partnership with McLaren.