BMW to cut another 5,600 by end of 2008
02-27-2008, 04:27 AM
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BMW to cut another 5,600 by end of 2008
Luxury automaker pares expenses amid big cost-cutting program
AP
MUNICH, Germany - Luxury car maker BMW AG said Wednesday it will cut another 5,600 jobs by the end of 2008, on top of 2,500 other positions that have already been eliminated, as it moves to pare expenses amid a wider cost-cutting program.
Speaking to reporters in Munich, where the company is based, BMW?s head of personnel, Ernst Baumann, said that the jobs being cut include 2,500 full-time workers and 2,500 temporary workers, along with 600 other positions in Germany and elsewhere.
He said that another 2,500 positions had already been eliminated, bringing the total number of cuts and planned cuts to 8,100 positions. That would represent about 7.5 percent of BMW?s worldwide work force of almost 108,000 workers.
BMW?s brands include its namesake luxury cars along with the Mini and Rolls-Royce brands as well as motorcycles.
Baumann said the cost of the cuts, including severance pay, benefits and other expenses, would likely be in the ?three-digit million? euro range, though he did not specify how much.
In a nod to the rising euro, which hit a record high of $1.5087 earlier in the day, Baumann warned that other cuts could be made if the dollar continues its fall.
In December, BMW confirmed it would start cutting jobs after new Chief Executive 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 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.
It said then that it was targeting a rise in productivity of at least 5 percent per year, and Reithofer declared that ?we will focus the entire organization on the return on capital.?
Luxury automaker pares expenses amid big cost-cutting program
AP
MUNICH, Germany - Luxury car maker BMW AG said Wednesday it will cut another 5,600 jobs by the end of 2008, on top of 2,500 other positions that have already been eliminated, as it moves to pare expenses amid a wider cost-cutting program.
Speaking to reporters in Munich, where the company is based, BMW?s head of personnel, Ernst Baumann, said that the jobs being cut include 2,500 full-time workers and 2,500 temporary workers, along with 600 other positions in Germany and elsewhere.
He said that another 2,500 positions had already been eliminated, bringing the total number of cuts and planned cuts to 8,100 positions. That would represent about 7.5 percent of BMW?s worldwide work force of almost 108,000 workers.
BMW?s brands include its namesake luxury cars along with the Mini and Rolls-Royce brands as well as motorcycles.
Baumann said the cost of the cuts, including severance pay, benefits and other expenses, would likely be in the ?three-digit million? euro range, though he did not specify how much.
In a nod to the rising euro, which hit a record high of $1.5087 earlier in the day, Baumann warned that other cuts could be made if the dollar continues its fall.
In December, BMW confirmed it would start cutting jobs after new Chief Executive 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 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.
It said then that it was targeting a rise in productivity of at least 5 percent per year, and Reithofer declared that ?we will focus the entire organization on the return on capital.?
02-27-2008, 04:03 PM
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Originally Posted by pharding' post='536626' date='Feb 27 2008, 07:27 AM
BMW to cut another 5,600 by end of 2008...and Reithofer declared that ?we will focus the entire organization on the return on capital.?
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