While not making draconian cuts like The Big 2.8, BMW is reducing their work force to lower their overheads. The Detroit Free Press reports that the Bavarian automaker is cutting an additional 5.6k jobs this year. That's in addition to the 2.5k positions they've already eliminated. By the time they're through showing workers the door, Bimmer will have trimmed 7.5 percent of their worldwide workforce. The move comes in response to Chief Executive Norbert Reithofer's commitment to increase the company's "rate of return" (which made the exec queasy and left the money men a lot less than impressed). Ernst Baumann, BMW's head of personnel, said the job reductions will end-up costing in the "three-digit million" euro range for severance pay, benefits and other expenses. He also warned that if the dollar continues to fall, more employees would get the old heave-ho.
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Bloomberg reports 8100 cuts total:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azLVApR0qQXU
starlightmica
Bloomberg reports 8100 cuts total
Yep. That’s the 2.5k previously cut and the 5.6k they’re planning this year.
If only they could trim the fat on their cars as well.
Well it only makes sense to do this after their most profitable year ever. How will they show growth after that? Gotta keep the I-bankers happy.
Still, wouldn’t a material cost reduction, like maybe 400lbs worth in each of their vehicles save alot more?
I wonder how this cut is going to effect their cars in the future, I mean they were hugely profitable and they are cutting the workforce. I hope these cost cuts don’t come at the expense of quality employees who would be bringing better products in the future. Hate to see what the cuts will be like when they have a year with heavy losses.
Side note: Just the other day I saw ‘Some Assembly Required’ and they were showing the assembly of the 3-series diesels. There were hardly any employees working on it, the engines were the only substantial hand assembly. The platform and body assembly looked like it was run by 10 people in the whole building. Like something out of Star Wars watching machines make machines in a huge sterile line. You would think their cars would be more reliable too with so much robot assembly.
# Redbarchetta :
February 28th, 2008 at 11:13 am
You would think their cars would be more reliable too with so much robot assembly.
robot assembly won’t fix software bugs, electrical glitches, design flaws, or wear parts.
robot assembly won’t fix software bugs, electrical glitches, design flaws, or wear parts.
I realise its not going to fix those problems but it should make mechanical flaws and some design flaws easier to spot and then once addressed and then fixed it should produce a consistently reliable product, at least in theory. I keep forgetting about the huge number of electrical gremlins manf. are putting into their cars these days.
Fix your roof when the sun is shining.
The falling dollar is really going to screw them. Their SC plant is their only safety net.
Good for those workers that Starbucks and WalMart are hiring in Germany.
After all, who needs manufacturing jobs?
America doesn’t…………………right???????