BMW struggles to cut 5k jobs, may increase incentives

MUNICH City– BMW AG may offer more incentives to all the workers who’s seleled to persuade them to leave and help the automaker to reach a target of eliminating about 5k positions.

BMW has been unable to meet its headcount-reduction goal with existing measures, CFO, Mr. Nicolas Peter said in an internal posting confirmed by HQ company. Those have included placing employees on unpaid leave (without salary) and reducing working hours for those on shorter contracts.

The company could add early retirement packages to the list, a BMW spokeswoman said Friday.

While BMW AG typically loses and replaces about 5K employees every year due to natural attrition, uncertainty caused by the COVID-19 pandemic has slowed the outflow as people put off plans to seek other jobs or to start their own businesses.

The CoronaVirus outbreak has been made it tough for all automakers to sell vehicles as government measures to contain the virus caused all the showrooms has been closed and slowed production to a crawl. Weak consumer demands has dashed any chance of a swift recovery, and companies have moved to reduce costs.

German automakers has been hoped for help in the form of state car-buying incentives to stimulate demand, but were left frustrated when Chancellor Angela Merkel postponed a planned summit to discuss an incentive program.

BMW shut most of its factories in April-2020, before restarting them earlier this month (MAY2020).

 

Sources: https://www.autonews.com/automakers-suppliers/bmw-struggles-cut-5000-jobs-may-increase-incentives

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