NASCAR eliminated testing last week and this week cutbacks began among the organization’s racing teams due to the struggling economy.
Hendrick Motorsports, having just secured its third Sprint Cup championship, reduced its workforce by 12 positions—approximately two percent - and other cuts have been made across the board by other teams.
Petty Enterprises, The Wood Brothers, Bill Davis Racing and Ernie Elliott’s engine shop all reduced their staffs in the two days since Sunday’s season finale.
Although exact numbers are hard to pin down, Petty chief marketing officer Mike Bartelli said the company released 30 employees.
“Petty Enterprises is not immune to the current economic downturn,” Bartelli said. “During these tough times, we’ve had to make some very difficult decisions, including a reduction in staffing levels ... we regret that we had to eliminate any.
“We’re focused on weathering the tough road ahead and aggressively marketing the Petty brand and sponsorship assets in the months ahead in preparation for the 2009 season.”
The Wood Brothers are believed to have let go more than 20 employees.
BDR, which has no sponsorship lined up for its Sprint Cup program, has cut its staff to all but a handful of employees. Elliott, who built engines for Chip Ganassi Racing, did the same since it’s unlikely Ganassi will use his motors once he completes a merger with Dale Earnhardt Inc.
Dale Earnhardt Inc. let 116 people go last week when it announced a merger with Chip Ganassi Racing with Felix Sabates. The Ganassi team cut several dozen employees when it shuttered its No. 40 team, but Ganassi and DEI officials agreed not to comment on how the new team will be structured and any further staff reductions until all of the details of merger are finalized.
Papathanassiou said he believes some of the people who lose their racing jobs this winter will eventually find a new place to work – most likely, however, with less pay.
“It’s similar to selling a house,” he said. “How long your house stays on the market might have a lot to do with how much you eventually will sell it for. It’s the same thing for the cost of labor. How much are people willing to work for? As that cost comes down, more people will be able to go to work. I think people will be able to find jobs in the industry.”
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