'Fragile' Formula One puts staff on leave while bosses take pay cuts

Formula One has put almost half its staff on furlough (leave of absence) until the end of May because of the coronavirus, with CEO Chase Carey and senior managers also taking a pay cut, an F1 spokesperson said on Tuesday.

Sources said those on furlough were mainly employees whose work focused on "race weekend" and who could not carry it out remotely. The company employs in excess of 500 people.

The F1 season has yet to start, with the March 15 season opener in Australia cancelled along with the Monaco showcase in May. Six other races have been postponed.

Liberty Media-owned Formula One hopes to start some time in the European summer, conditions permitting, with a reduced schedule of 15-18 races.

The spokesperson said the senior leadership team had voluntarily taken a 20% pay cut but would remain at work, while Carey, a US citizen, had taken a bigger reduction.

Formula One earns most of its revenue from race promotion fees, broadcast deals and advertising and sponsorships - which have all been stalled by the virus, with most sport at a standstill globally.

Three of the seven UK-based teams - McLaren, Williams and Racing Point - have also furloughed staff in the past week to cut costs.

The teams are currently on a factory shutdown, with the August break brought forward to March and April to allow space for race rescheduling.

Under the UK government's furlough scheme announced last month, employers can claim for 80% of employees' usual monthly wage costs, up to 2,500 pounds (roughly R56,000) per month.

F1 teams have already agreed to delay until 2022 significant technical rule changes planned for 2021 and use the same cars next year to save money.

McLaren boss Zak Brown warned at the weekend that Formula One is in "a very fragile state" and risks losing some of its 10 teams unless some big changes are made.