Mercedes-Benz job cuts triggered by Formula 1 rule changes

Up to 50 jobs have been cut at a Mercedes-Benz Formula 1 engine plant because of rule changes to the motor sport.

Around 10% of the workforce have been made redundant at the high-performance engine factory in Northampton – which supplies parts to big name F1 teams McLaren and Brawn GP – after changes to the sport’s regulations will see teams encouraged to operate within a £40m budget from next year.

Walter Shattling, the company’s motorsport director, told the Northampton Chronicle the cap would result in less engines being produced, and less staff being needed.

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“Formula 1 rule changes force us to do so [make cuts] because there is a reduction in engine developing and production activity. Unfortunately, it is part of the restructuring process at Mercedes-Benz which we’re forced to do by regulations. It is an unfortunate consequence.”

Brawn GP recently shed around a third of its workforce because of the recession.