BMW to cut 5,600 More jobs
02-28-2008, 05:29 PM
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Associated Press
February 28, 2008
BMW to cut 5,600 more jobs by year's end
Automaker is silent on S.C. plant impact
MUNICH, Germany - Luxury automaker BMW AG said yesterday that it would cut another 5,600 jobs by the end of 2008, on top of 2,500 other positions that have been eliminated, as it moves to pare expenses amid a wider cost-cutting program.
Speaking to reporters, BMW's head of personnel, Ernst Baumann, said the jobs being cut include 2,500 full-time and 2,500 temporary workers in Germany, along with 600 positions abroad, primarily international sales and distribution positions.
He said 2,500 positions - all of them temporary - had already been eliminated, bringing the total number of cuts and planned cuts to 8,100 positions, or 7.5 percent of the company's work force of almost 108,000, including both permanent and temporary employees. The cuts to its permanent work force, which totals 80,000 worldwide, account for 3 percent of its staffers.
The Munich-based company did not say specifically where the 600 global job cuts would come.
BMW employs 4,700 people at a plant in Spartanburg, S.C., where it produces the X5 SUV and the Z4 Roadster. It plans to boost production there to 240,000 cars a year when it adds more SUV production at the plant, but did not say if any of the cuts would be implemented there. The United States is the company's biggest market and the lower dollar gives the company an incentive to ramp up production there.
BMW's brands include its namesake luxury cars along with the Mini and Rolls-Royce brands as well as motorcycles.
In December, BMW confirmed it would start cutting jobs after new chief executive officer, Norbert Reithofer, said he planned to focus on increasing the rate of return for the maker of the pricey and desirable sedans, sport utility vehicles and sports cars.
BMW said in September that it would put "all cost structures to the test" and continue to standardize processes to reduce costs for each vehicle in development, production, sales and administration.
The IG Metall industrial union responded angrily to yesterday's announcement.
"A pretax profit of 3.7 billion euros [$5.5 billion] per year apparently is no longer enough for BMW," said the union's chief in Bavaria, Werner Neugebauer, who is a member of the automaker's supervisory board.
February 28, 2008
BMW to cut 5,600 more jobs by year's end
Automaker is silent on S.C. plant impact
MUNICH, Germany - Luxury automaker BMW AG said yesterday that it would cut another 5,600 jobs by the end of 2008, on top of 2,500 other positions that have been eliminated, as it moves to pare expenses amid a wider cost-cutting program.
Speaking to reporters, BMW's head of personnel, Ernst Baumann, said the jobs being cut include 2,500 full-time and 2,500 temporary workers in Germany, along with 600 positions abroad, primarily international sales and distribution positions.
He said 2,500 positions - all of them temporary - had already been eliminated, bringing the total number of cuts and planned cuts to 8,100 positions, or 7.5 percent of the company's work force of almost 108,000, including both permanent and temporary employees. The cuts to its permanent work force, which totals 80,000 worldwide, account for 3 percent of its staffers.
The Munich-based company did not say specifically where the 600 global job cuts would come.
BMW employs 4,700 people at a plant in Spartanburg, S.C., where it produces the X5 SUV and the Z4 Roadster. It plans to boost production there to 240,000 cars a year when it adds more SUV production at the plant, but did not say if any of the cuts would be implemented there. The United States is the company's biggest market and the lower dollar gives the company an incentive to ramp up production there.
BMW's brands include its namesake luxury cars along with the Mini and Rolls-Royce brands as well as motorcycles.
In December, BMW confirmed it would start cutting jobs after new chief executive officer, Norbert Reithofer, said he planned to focus on increasing the rate of return for the maker of the pricey and desirable sedans, sport utility vehicles and sports cars.
BMW said in September that it would put "all cost structures to the test" and continue to standardize processes to reduce costs for each vehicle in development, production, sales and administration.
The IG Metall industrial union responded angrily to yesterday's announcement.
"A pretax profit of 3.7 billion euros [$5.5 billion] per year apparently is no longer enough for BMW," said the union's chief in Bavaria, Werner Neugebauer, who is a member of the automaker's supervisory board.
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