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]
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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