Filed under: Euro, Hirings/Firings/Layoffs, BMW
BMW planning big layoff in 2008
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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Reader Comments (Page 1 of 2)
3seriesisking 4:31PM (12/21/2007)
No one can say they didn't see this coming.
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zamafir 5:37PM (12/21/2007)
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.
MSM 10:35PM (12/22/2007)
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
Max 4:35PM (12/21/2007)
I like how its reported that BMW's plants are running at 100% capacity, yet major layoffs are required. The layoffs don't appear to the result of reduced global sales.
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3seriesisking 4:42PM (12/21/2007)
BMW sales are doing just fine and have been doing very well all year. The layoffs aren't a result of a slump in sales by any means. I'm sure the folks in Munich know what they are doing here.
http://www.autoblog.com/category/by-the-numbers/
MGBYG 4:41PM (12/21/2007)
Investor's greed beats out worker's pay, again.
Reminds me why I have never voted for or will ever vote Republican/Conservative. :)
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Big Rocket 4:53PM (12/21/2007)
How did you jump from "investor's greed" to the Republican/Conservative platform? But don't let that stop you from blaming the GOP, including layoffs over in Germany.
Steven 4:56PM (12/21/2007)
Try autoblog green, it's all politics over there.
dave 9:08PM (12/21/2007)
Go pay your union dues and shutup.
naggs 9:40PM (12/21/2007)
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
naggs 4:55PM (12/21/2007)
sounds like BMW is trying to move towards lower volume higher profit margin vehicles
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Toy Yoda 5:11PM (12/21/2007)
Like the 1 and the Mini.
naggs 9:42PM (12/21/2007)
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
Sandeep 5:18PM (12/21/2007)
were these jobs actually necessary, or legacies that were inefficient?
I got nothing against firing workers if they're twiddling their thumbs...
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Atropos 5:26PM (12/21/2007)
'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.'
Absolutely. Profiting from someone elses misfortune is the way to go!
And PS: Last years M3 was a better looking car than anything in the currently lineup. Please stop going in the wrong direction, thanks.
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3seriesisking 5:37PM (12/21/2007)
I have some news for you Atropos. Sales speak for themselves.
cameron42985 5:33PM (12/21/2007)
Almost 9%, really.
...While we're on irrelevant topics.
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PGAero 7:06PM (12/21/2007)
Actually, 8000 is 7.41% of 108,000.
Cameron, are you referring to something else?
cameron42985 8:55PM (12/21/2007)
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.
Rene Curry 10:34AM (12/22/2007)
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.
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