5,600 jobs to go at BMW

Munich-based carmaker BMW is to cut a further 5,600 jobs this year, in addition to the 2,500 jobs already eliminated.

In a bid to cut annual costs by $744 million (£380 million), the luxury carmaker said 2,500 full-time manufacturing positions will go, 2,500 part-time factory roles will go and 600 sales and distribution jobs.

The total number of job losses will amount to 8,100 – this represents approximately 7.5% of BMW’s global work force of almost 108,000 workers.

Head of personnel, Ernst Baumann, said the cost of the cuts, including severance pay, benefits and other expenses, would likely be in the 3-digit million euro range, though the exact amount was not specified.

Late last year, 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 costly and desirable sedans, sport utility vehicles and sports cars.

BMW’s most recent quarterly results failed to meet analyst’s expectations.

BMW’s brands include its namesake luxury cars along with the Mini and Rolls-Royce brands as well as motorcycles.

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