Employment rolls in Formula 1 are shrinking
The radical rule changes in Formula 1 for 2007 and beyond aren't just affecting the racing - they're having a dramatic impact on the highly specialized industry that supports the most technically advanced racing series in the world. The announcement late last week that legendary British engine manufacturer Cosworth is planning to lay off 40 percent of its staff at the end of the season signalled the beginning of a dramatic restructuring on the engineering side of the sport.Cosworth commercial director Bernard Ferguson predicts that a wave of layoffs will sweep through Formula 1 as a result of the new rules that have greatly restricted engine development and supply, saying, "Perhaps we've anticipated it and are reacting to it earlier than anyone else, but I'm sure others will follow."
The chief architect of those rule changes, FIA president Max Mosley, defends the changes as necessary to ensure the future viability of Formula 1, which in Mosley's mind means slashing the costs of running a Formula 1 team. And that means that jobs must go, with employment costs (the largest expense category for a team) rumored to be as much as $375 million annually for top-spending teams.
[Source: Crash.net]
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Reader Comments (Page 1 of 1)
Paddock F1 6:29AM (6/07/2009)
I think Max Mosley has got it right. If you think about it, the 40 million budget cap will invite new teams and create more jobs not get rid of them. There at least another 10 new teams looking to race thanks to the budget cap. If FOTA stop throwing out the toys, then there'd be more jobs not less.
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David Ebert 3:26AM (8/22/2006)
What a shame cosworth engineering is in such a bad state Mike Costin and Duncan Worth must be rolling in there graves. They once had the greatest formula one engine which won its first grand prix in 1969 with the great Jimmy Clark and it was still winning 20 years later with basically the same engine. regards David.
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Quills R. Optional 3:46AM (8/22/2006)
In 2007 Cosworth will not be supplying Williams with engines anymore, so that means all they have left is Torro Rosso.
Which means Cosworth will have less money, and will need fewer people. I don't think the cutbacks will be that drastic at the top teams.
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Vega 5:41AM (8/22/2006)
@#1: It's Keith Duckworth, not Duncan Worth.
And Mike Costin is still alive, as far as I know.
And the DFV enginge won its first outing in 1967, not 1969 (Dutch Grand Prix, Jim Clark, Lotus 49)
Dude, check your facts.
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Meek 10:55AM (8/22/2006)
Max Mosley's changes will have one effect. F1 will no longer be recognized as 'the most technically advanced racing series in the world.' Also, this will drive some of the manufacturers out of the sport as they are there for the technical advancements. Others that are there mainly for PR, like Toyota, will stay.
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James2 11:59PM (8/22/2006)
Max Mosley, how can we turn YOU into a "redundancy"? You are systematically ruining Formula One. Oh, and take Bernie with you.
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