The Mercedes Formula 1 team dismissed four workers, and disciplined three more, following a breach of its diversity and equality policy at its Brackley headquarters.
The employees were dismissed on August 2, following an investigation into a complaint.
In a statement, Mercedes said: “We condemn this behaviour in the strongest terms and acted immediately upon the complaint. We value the diversity of our employees and it is a source of strength for our team.
“Our working environment is based upon appreciation and mutual respect.”
According to a report in British tabloid The Sun, the dismissed workers had been involved in a campaign of racist bullying against a Muslim employee.
Mercedes has often credited its run of F1 dominance to the atmosphere it has tried to cultivate at the track and back at the factory. Earlier this year, Mercedes team boss Toto Wolff said it had been able to “create an environment where you actually enjoy your job” and that he had “zero tolerance for internal politics”.
He has also spoken about the need to “spend time and develop empathy for the individual himself”.
“It is truly about taking care of the human and their objectives,” said Wolff in July. "I think it is as simple as it is. We truly care about each other. It is not some kind of tree-hugging sentence that we have read somewhere on a billboard.
“It is the mindset that works in this team and it translates into all areas of the organisation."