It will cut 1,200 jobs.
"It is a course of action we have worked hard to avoid, having already undertaken dramatic cost-saving measures across all areas of the business. But we have no other choice but to reduce the size of our workforce," said McLaren executive chairman Paul Walsh.
According to reports, McLaren employs more than 4,000 currently, so the cuts would cost more than a quarter of the workforce. Around 70 or the 800-strong F1 team are expected to be affected. The move also comes after it was the first F1 team to furlough employees back in April.