BMW Might Axe 10,000 Jobs

23. Juni 2020 - Motor1

BMW Might Axe 10,000 Jobs

The internal changes continue for the majority of luxury car manufacturers.

While many car companies have resumed manufacturing and business operations at factories and offices around the world, the past few months have been tough on the books for the entire industry. Luxury automobile manufacturers have been taking a ton of blows lately, and BMW is the latest to make some changes to keep help them afloat since the coronavirus changed the automotive landscape several months ago. The costs have piled up as production centers and dealerships around the world remained closed, with car sales plummeting to unprecedented numbers in global markets.

According to Reuters, a source at BMW has confirmed that the German manufacturer is looking at axing at least 10,000 contract workers, in an effort to reduce capacity and help mitigate growing costs. BMW has said that they have reached an agreement with the worker's council on a satisfactory package that consists of "personnel measures for a sustainable future." As with every company, having to let people go is the last resort, and while it may not be the most ideal setup, steps have been taken to make sure that there is sufficient compensation.

Other European luxury automakers have instituted company-wide changes in early June, including Bentley and Aston Martin, and we're pretty sure that BMW won't be the last. Early May also saw reports of BMW Australia flooding their dealership floors with demo and fleet cars in order to inflate sales reports, a move that could work against them in the future.

Related to the recent internal changes is the announcement that the development alliance between BMW and Daimler will be put on hold indefinitely, stating that after extensive reviews, both companies have agreed to concentrate on their separate and existing development paths. While there is a chance to resume the project, both companies are free to work with other partners.

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