COVID-19 crisis triggers temporary layoffs, pay cuts at IndyCar and IMS
The COVID-19 crisis is even affecting Roger Penske’s many business interests, including the IndyCar series and Indianapolis Motor Speedway, where pay cuts and layoffs have begun.
In a letter to all of his Penske Corporation employees, which numbers 60,000 worldwide, Penske stated that the company’s senior leadership will be taking pay cuts, and RACER understands that approximately 50 workers in IndyCar and IMS have been temporarily laid off, with their benefits remaining intact.
It’s believed some of the jobs put on hold were the construction workers making improvements to the Speedway, which is now scheduled to host the 104th Indianapolis 500 on August 23.
One of affected IndyCar employees told RACER that management was hopeful this would only last 60 days.
“In this crises, businesses and organizations are cutting expenses and doing what they need to do to get through today’s challenges,” said Penske Entertainment president Mark Miles. “Penske Entertainment will be well positioned for the time when things begin to return to normal.”
IndyCar is planning to open its season at Detroit with a doubleheader May 30-31.
Penske, whose businesses are concentrated on the transportation industry, and company president Rob Kurnick will forfeit 100 percent of their salaries throughout the duration of the pandemic, now in its third week, and the Penske Corporation board of directors has also waived its cash compensation for the next six months.
All Penske Corporation entities in the United Kingdom, Italy and Spain have been shut down. In Germany and Australia, sales operations are closed while he service/parts facilities remain open.
In the United States, Penske Transportation Solutions, along with associated automotive and commercial dealerships, have been declared as ‘essential businesses,’ and remain open.