BMW has said it plans to cut 8,100 jobs. Management board member Ernst Baumann said of the 8,100 job cuts, around 5,000 are part-time workers based in Germany and 2,500 employees with fixed contracts.
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Another 600 employees with fixed contracts abroad will be affected, he said, according to Reuters.
He said the job cuts are expected to be completed by the end of the year.
Those with fixed contracts will be offered voluntary redundancy packages, he added.
BMW has said it will save EUR500m a year by cutting several thousand jobs and EUR750m a year from purchasing.
“We are doing our homework to ensure our business success in the future. The implementation of our new strategy is not a 100-yard dash. This year, we are laying the foundation for a turnaround in profitability,” chairman Norbert Reithofer recently told analysts in London.
The measures are part of a plan named Number ONE strategy, which BMW presented at the end of September 2007. The aim is to achieve a return on capital employed (ROCE) of more than 26% and a return on sales of between 8% and 10% by 2012.
Group CFO Michael Ganal said the cost of materials would be reduced by 3% or EUR750m a year, resulting in EUR4bn savings by 2012.
EUR500m annual savings are expected to come from eliminating several thousand manufacturing workers. Ganal said BMW would use more temporary workers who offer greater flexibility. Permanent employees will be offered voluntary redundancy and partial retirement arrangements from 2008. Vacancies will not be filled.
