Munich, Germany – BMW has announced its new Number ONE strategy, which includes personnel restructuring and savings potential with the goal of turning around its profitability figures. The company intends to realize savings of �1 billion, with the greatest potential for savings coming in the areas of material, production and development costs.
Cuts at BMW Group’s domestic production locations will affect 2,500 employees, or around three per cent of the overall 80,000 permanent staff in Germany. Of the 28,000 permanent staff abroad, 600 positions will be cut, mainly in global sales subsidiaries.
As well, the company plans to cut 5,000 temporary workers in Germany; about 2,500 have already left the company. “Temporary workers are not employed by us but by their respective temporary employment agencies,” said Ernst Baumann, member of the Board of Management of BMW AG responsible for Human Resources. “There they will keep their jobs because the current market has a high demand for temporary staff.”
The company also plans to open up additional business areas in its Financial Services segment in the next few years and will get suitable employees ready for new assignments, via advanced training and qualification programs. The company plans to open approximately 500 new positions in this area in 2008.
Germany will remain a key production location and BMW is one of the few companies that employs the majority of its staff in Germany while selling most of its products abroad. Over 80 per cent of all units produced are sold outside of Germany; the company employs close to 108,000 permanent staff worldwide, with 80,000 of them in Germany.