BMW Trimming Payroll

News reports from Germany say cuts could affect 8,000 workers.

Ward's Staff

December 21, 2007

1 Min Read
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BMW AG will trim thousands of jobs next year as part of the German auto maker’s effort to increase profitability.

BMW would not confirm an exact number, but the German news magazine Der Spiegel puts the number at 8,000 jobs. Most cuts will come in Germany, where BMW employs between 6,000 and 8,000 temporary workers. Globally, the auto maker employs roughly 108,000 people.

The news follows an announcement in September, when company executives pledged to scrutinize all cost structures and standardize vehicle development processes, production, and sales and administration activities. Its target is to raise productivity by 5%.

BMW earnings through the first nine months of 2007 fell 2% vs. year-ago. The auto maker cited costs related to product launches, higher research and development and raw material costs, and a weaker U.S. dollar and Japanese yen.

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