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BMW plans as many as 6 000 job cuts in Germany, report says

The job cuts form part of BMW’s ongoing cost-saving efforts.
BMW plans job cuts, mainly at its headquarters in Munich, as part of its savings program. Image: Krisztian Bocsi, Bloomberg

BMW plans to cut as many as 6 000 jobs in Germany by 2022 as part of its ongoing cost-savings effort, according to Manager Magazin.

Most of the positions would be eliminated at the carmaker’s headquarters in Munich under the plan that could be unveiled in December, the weekly publication reported without saying where it got the information.

Klaus Froehlich, the management board member responsible for research and development, is expected to leave next summer because he doesn’t want to work with new Chief Executive Officer Oliver Zipse, the magazine also said, adding that Supervisory board head Norbert Reithofer wants him to stay.

A spokesman for BMW couldn’t be reached for immediate comment. The carmaker’s shares rose 0.5% at 1:50 pm in Frankfurt.

BMW has vowed to boost efficiency as part of an ongoing 12 billion-euro ($13.3 billion) savings program aimed at offsetting increased spending to develop and introduce 25 electrified models. The carmaker is counting on a fresh product lineup and better efficiency to take on rival Mercedes-Benz as waning demand in key markets squeezes profit across the industry.

European car sales fell sharply in August in a further sign of deepening woes in the sector.

© 2019 Bloomberg L.P.

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It is not just in SA where the recessive market results in job losses. The World is changing far more quickly and we must adapt!

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