Photo: BMW
German carmaker BMW is currently in the process of restructuring its workforce. The process started a while ago, but because of the completely unexpected health crisis, further cost-cutting measures have been announced this week.
Following discussions with the representatives of its workforce, the carmaker said it has decided to implement four additional measures in addition to what was already in effect, with the goal of having a total employee number at the end of the year slightly lower than in 2019.
BMW says the first measure to be taken is reducing the employment contracts of people with extended weekly working hours. Also, some employees will be asked to take an extra six to eight days of leave, and for those close to retirement age, severance packages will be offered.
At the same time, the carmaker is planning to accelerate the educational program for people under the age of 25, and intends to add 1,200 new apprentices by the end of 2021 in Germany.
“We will continue to do things the BMW way and develop solutions in constructive dialogue with employee representatives,” said in a statement Ilka Horstmeier, member of the Board of Management of BMW AG responsible for Human Resources and Labour Relations.
“We have agreed on a forward-looking package of measures that will help improve the company’s earnings in the short term, but will also preserve our capacity for innovation in the long term. This will ensure we remain a reliable employer.”
Although it is still to early to assess the impact of the health crisis on the industry – most car plants around the world were closed for at least a month – it’s likely more carmakers will follow suit and announced similar measures in the future.
According to data compiled by JATO Dynamics, car sales in Europe dropped in April to the lowest level since 1970, a drop fueled exclusively by the health crisis.
BMW says the first measure to be taken is reducing the employment contracts of people with extended weekly working hours. Also, some employees will be asked to take an extra six to eight days of leave, and for those close to retirement age, severance packages will be offered.
At the same time, the carmaker is planning to accelerate the educational program for people under the age of 25, and intends to add 1,200 new apprentices by the end of 2021 in Germany.
“We will continue to do things the BMW way and develop solutions in constructive dialogue with employee representatives,” said in a statement Ilka Horstmeier, member of the Board of Management of BMW AG responsible for Human Resources and Labour Relations.
“We have agreed on a forward-looking package of measures that will help improve the company’s earnings in the short term, but will also preserve our capacity for innovation in the long term. This will ensure we remain a reliable employer.”
Although it is still to early to assess the impact of the health crisis on the industry – most car plants around the world were closed for at least a month – it’s likely more carmakers will follow suit and announced similar measures in the future.
According to data compiled by JATO Dynamics, car sales in Europe dropped in April to the lowest level since 1970, a drop fueled exclusively by the health crisis.
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