Bahrain's McLaren is facing further uncertainty about its long-term future after its co-title sponsor announced significant job cuts (opens in new tab) across its operations.

On Tuesday, the automotive and technology company acknowledged that it has been "severely affected" by the coronavirus pandemic and confirmed reports that it will cut a quarter of its workforce, or 1,200 employees.

The McLaren team in Bahrain, which imposed salary deferrals on its riders earlier this year, is now looking at how the cuts will affect its budget. After Vincenzo Nibali moved to Trek Segafredo (open in new tab), the team underwent a major shakeup for 2020, with Rod Ellingworth joining from Team Sky as team manager.

"Team Bahrain McLaren acknowledges that the McLaren Group has announced a significant redundancy program," the team said in a statement to Cycling News.7]

"The team is working to fully understand the implications related to its own operations. . and have no further comment at this time."

"The team is working to fully understand the full impact related to its own operations and has no further comment at this time.

McLaren has been making significant job cuts, but the team's position has become even more precarious due to the slump in Middle Eastern oil prices.

Earlier this year, Cycling News reported that team players, including Mark Cavendish and Mikel Landa, were forced to defer 70% of their payments in March, April, and May. There was another payment delay last December; it is not yet clear how the June payroll will be affected.

"Like many companies around the world, our revenues are subject to great uncertainty at this time of year. We are acting in the long-term interests of our riders and staff to ensure that we have the means to operate at a competitive and viable level after this crisis has passed," Ellingworth said at the time.

News of McLaren's job cuts was first reported by Sky News on Tuesday, and McLaren issued a statement later that day.

McLaren's operations consist of car manufacturing, the Formula One team, the "Applied" technology division, and the pro cycling division.

McLaren, which has suspended production at its British factory since March, has been struggling to rebuild its finances, trying to raise 250 million pounds using its collection of classic cars as collateral and reportedly applying for an emergency loan of 150 million pounds from the British government, which was rejected

"The business is now in a state of emergency.

"It is a path we have worked hard to avoid, having already taken dramatic cost-cutting measures across all areas of the business. But now we have no choice but to reduce the size of our workforce," McLaren's statement reads.