“We’ve had to re-size”– Red Bull and Mercedes reveal their cost-cutting measures in 2021

“We’ve had to re-size”– Red Bull and Mercedes reveal its cost-cutting measures they adopted to align with the new budget caps.

The budget caps was a piece of news that every major team in Formula 1 had to swallow, as it meant they had to make compromises in its operations, including downsizing their staff.

Ferrari constantly reiterated that it was being compelled to take drastic measures due to the budget imposed and demanded the decision’s reversal.

Now, Mercedes and Red Bull are the two other big teams in the sport, and their team principals have revealed what measures their side took to adhere to the new regulation.

“We’ve had to re-size, re-package ourselves, and it’s really tough when you’re saying goodbye to members of the team, some of which have been there for 25 years across its different formats,” said Christian Horner.

“So it’s really been a tough exercise and continues to be a significant challenge, particularly for the bigger teams. It drives efficiency into the business because it quite simply has to. Headcount is your highest cost. Therefore, it has to be as efficient as you can make it.”

Painful experiences

Even Toto Wolff revealed his team’s ordeal when he had to reduce his personnel and directly held the cost cap responsible for it when asked whether what he went through was as painful as Horner.

“Absolutely. You cannot secure your capability in terms of people if you suddenly have to operate under a drastic cost cap,” replied Wolff. “We go through the same painful experiences with consultations to make the cost cap. To say the least, it is not trivial.”

Next year, the budget cap will reduce furthermore, and the teams will have to seek new measures to fall in line with the financial decrees thought to be introduced to level the competitive field.

About the author

Tanish Chachra

Tanish Chachra is the Motorsport editor at The SportsRush. He saw his first race when F1 visited India in 2011, and since then, his romance with the sport has been seasonal until he took up this role in 2020. Reigniting F1's coverage on this site, Tanish has fallen in love with the sport all over again. He loves Kimi Raikkonen and sees a future world champion in Oscar Piastri. Away from us, he loves to snuggle inside his books.

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