• Dec 21, 2007
We're so used to hearing that either GM, Ford or Chrysler will be laying off a chunk of its workforce that it demands a double-take when another automaker announces cuts. Today BMW has announced that it will cut thousands of jobs in 2008, with some outlets reporting up to 8,000 workers will get the axe. A spokesman for BMW revealed that most of the jobs lost would be in Germany and those leaving the company would predominantly be temporary workers. If the final number does reach 8,000 employees, that means BMW will shed 8% of its global workforce that currently stands at 108,000 employees. The layoffs are, of course, a cost-cutting measure to improve profits, which will likely be down in 2007 compared to the year before because BMW is spending more money than it expected on new models, new technology research and the raw cost of materials it needs to build its Ultimate Driving Machines. Though the news will be painful to hear for the workers that lose their jobs, it came as sweet music to the ears of investors who are currently pushing up the price of BMW shares.
[Source: The Detroit Free Press]


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  • 16 Comments
      • 7 Years Ago
      were these jobs actually necessary, or legacies that were inefficient?

      I got nothing against firing workers if they're twiddling their thumbs...
      • 7 Years Ago
      Investor's greed beats out worker's pay, again.

      Reminds me why I have never voted for or will ever vote Republican/Conservative. :)
        • 7 Years Ago
        Go pay your union dues and shutup.
        • 7 Years Ago
        Try autoblog green, it's all politics over there.
        • 7 Years Ago
        you cant really blame the people running a company for taking steps to make more money, that is the entire reason for the entity to exist...

        blame the right wing politicans they have bribed to look the other way and kill all attempts at regulation
      • 7 Years Ago
      Almost 9%, really.

      ...While we're on irrelevant topics.
        • 7 Years Ago
        Ohh. Somebody's got a calculator.

        I would've grabbed for it myself, but the comment leans more on the second point than the first.
      • 7 Years Ago
      If I were to guess I would say it is because of China. China requires specific domestic content or large duties are added. Many BMW products that were exported out of Germany to China and will now shift to being manufactured in China.

      Again, that's just a guess.
      • 7 Years Ago
      Wouldn't that be 7.4% of BMW's current employees?
      • 7 Years Ago
      sounds like BMW is trying to move towards lower volume higher profit margin vehicles
        • 7 Years Ago
        Like the 1 and the Mini.
        • 7 Years Ago
        the 1 is hardly a entry model, it really falls into the 30-50k price range, at least in the US

        the mini is the high end car for that segment, profit margins on the mini are significant

      • 7 Years Ago
      No one can say they didn't see this coming.
        • 7 Years Ago
        Given their current product line-up and the whole 'freedom of independence' tagline, I concur. It's unfortunate, i'd rather hear BMW was returning to it's roots and producing ultimate driving machines unencumbered by 2 minute exercises in i-drive to reach claimed 0-60 times, and attractive remarkable cars. Oh well, apparently the European press is correct in indicating Audi is more a thorn in BMW’s side (in terms of profit and ever increasing market share) then we care to acknowledge stateside. Keep spending money on techonlogy BMW, keep those fingers firmly planted in your ears.
        • 7 Years Ago
        Yes BMW will continue to make a profit and set records as far as quantity of vehicles sold per year. But it is quite clear that Audi is on fire right now and not taking names. The rs4 is one of the most memorable vehicles in the last 20 years- yes I have driven one ( multiple times) and it almost made me have an org.....! The Audi's have matched and even moved past BMW in terms of quality and overall comfort and control. I don't drive anything else at the current moment not would I ever look back at my 7 series which was replaced with an rs4. Which soon will move on to the used car afterlife when my rs6 is delivered. Cheers
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