Job cuts at BMW

[osbornk]

BMW (BMWG.DE: Quote, Profile, Research), the world's largest premium carmaker, plans to cut 2,500 permanent staff in Germany and 8,100 jobs in total in a move that will cost the company hundreds of millions of euros, it said on Thursday.

The reductions are intended to generate annual savings of 500 million euros ($752 million) starting in 2009.

[roy]

BMW (BMWG.DE: Quote, Profile, Research), the world's largest premium carmaker, plans to cut 2,500 permanent staff in Germany and 8,100 jobs in total in a move that will cost the company hundreds of millions of euros, it said on Thursday.

The reductions are intended to generate annual savings of 500 million euros ($752 million) starting in 2009.

I don't understand the numbers. how can one sentence say cost the company hundreds of millions and the next annual savings of 500 million? Are they installing robots to replace people?

Just curious

[gabentx]

I don't understand the numbers. how can one sentence say cost the company hundreds of millions and the next annual savings of 500 million? Are they installing robots to replace people?

Just curious

The way I look at it is this:

In 2008, they will spend hundred's of millions in euros in what I would guess is severance packages, etc. for the 8100 total jobs that they're cutting which in turn starting in 2009 will save them around 500 Million Euros which over 8100 jobs is an average of over 61,700 euros per person laid off.

Basically it's a one time cost to save more in 2009 and beyond....

Then again, I could be wrong...

[boxerr]

Instead of putting people off, they could use them on the F800GS production line.:laugh

[PAULBACH]

And in this morning's paper and in Morning Reads, Honda is closing its Goldwing plant in Ohio.

[BradfordBenn]

Also often times the company will pay off early retirement, pay off vacations, offer severance... etc. So there is a certain amount of cost to lay people off.

[wmubrown]

BMW (BMWG.DE: Quote, Profile, Research), the world's largest premium carmaker, plans to cut 2,500 permanent staff in Germany and 8,100 jobs in total in a move that will cost the company hundreds of millions of euros, it said on Thursday.

The reductions are intended to generate annual savings of 500 million euros ($752 million) starting in 2009.

Hopefully the cuts will include the final drive design team! ;)

[BeemerMike]

Hopefully the cuts will include the final drive design team! ;)

And hopefully Chris Bangle will be one of the 8,100! :wave

[dlearl476]

Are they installing robots to replace people?

Just curious


No, they are installing plants in China.

[rinty]

I've heard that their car sales in Canada are down big time, but I don't know if that's only a rumour.

Rinty