BMW may cut about 5 thousand of its employees

BMW may cut about 5 thousand of its employees

June 7, 2020 0 By autotimesnews

This measure was caused by the crisis and a decrease in car sales amid the coronavirus pandemic. At the same time, the leadership of the German company is considering a strategy for creating compensation for employees.

The German manufacturer of premium cars BMW plans to reduce 5 thousand employees. This was reported by Automotive News Europe. The measure is forced, as sales of new cars, and therefore the company’s revenues, fell sharply against the backdrop of the coronavirus epidemic. Therefore, the leadership of the German company is looking for various ways to recover damages, including plans to reduce staff costs.

In early April, BMW provided a report for the first quarter, according to which sales of Bavarian brand cars in the world fell by 6.4%. At the same time, analysts give even more disappointing forecasts for the second quarter, as European markets practically froze during this period. By the end of 2020, BMW is no longer counting on profits. Reducing staff is one of the most effective measures to reduce losses. At the same time, BMW does not plan to simply dismiss employees, but they are preparing a whole package of compensations for them.

For some, they can arrange payments in the amount of several salaries, and some may get the opportunity for early retirement. Also, for a number of employees, unpaid leave with the preservation of the workplace or the transition to a three- or four-day work week can be organized.