The British supercar manufacturer and legendary Formula One team McLaren has announced plans to lay-off 1,200 members of staff.

It represents a cut of over a quarter of its workforce with the firm currently employing 4,000 people.

The impact of the coronavirus shutdown has seen motorsports events around the world cancelled while McLaren has also seen a decline in orders for their supercars.

"We deeply regret the impact that this restructure will have on all our people, but especially those whose jobs may be affected," said the company's executive chairman, Paul Walsh, in a statement.

"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 now have no other choice but to reduce the size of our workforce.

"This is undoubtedly a challenging time for our company, and particularly our people, but we plan to emerge as an efficient, sustainable business with a clear course for returning to growth."

The news comes after Formula One teams have agreed to introduce a new budget cap which will see teams reduce their spending through to 2025.

The cap will start a $145 million in 2021, falling to $140 million in 2022, and then $135 million for 2023 to 2025.

The situation will then be reviewed for the following years.

The Formula One season has yet to get underway and plans to stage two Grand Prix races in Silverstone in July and August were dealt a blow last week.

The UK government have said that people travelling to Britain from countries other than Ireland will have to self-isolate for two weeks.

It now looks more likely that the two opening races in due to take place in Austria in July will be followed by an event in Hungary although organisers are also looking to include Silverstone in the calendar in August.