BMW plans to cut to 6,000 jobs in GermanySeptember 21, 2019
According to Manager Magazin, BMW plans to cut to 6,000 jobs in Germany by 2022 as part of its cost-cutting efforts.
The weekly publication announced that most of the positions would be liquidated at the automaker’s headquarters in Munich, Germany, in accordance with a plan that could be unveiled in December without telling where it got the information from.
Klaus Fröhlich, BMW’s head of research and development, is expected to leave next summer because he doesn’t want to work with the new CEO Oliver Zips, the magazine said. The report states that BMW Chairman Norbert Reithofer wants him to stay.
BMW is undergoing a reshuffle of top managers. The store manager said that Ilka Horstmeyer was a favorite for the position of head of the human resources department. BMW said on Wednesday that the current head of human resources, Milagros Cain Carreiro-Andre, will not look for a new term, citing personal reasons. The report also says that Milan Nedelkovich will lead the production, and this position remains vacant, as Zips replaced Harald Krueger as CEO in August.
In response to the Manager Magazin’s report, BMW said it was striving to maintain its workforce in 2019 at the same level as last year. “We use depletion to further focus the company on the future and increase efficiency,” the statement said.
At the same time, the company said it was continuing to recruit employees in areas such as autonomous driving and electric mobility. BMW seeks to increase efficiency in the framework of the savings program in the amount of 12 billion euros (13.3 billion dollars), aimed at offsetting the increased costs of the development and implementation of 25 electrified models.
The automaker is counting on a new line of products and better efficiency to compete with Mercedes-Benz, as declining demand in key markets reduces profit in the industry. European car sales plummeted in August, another sign of deepening sector concerns.
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