Germany's automotive sector, a cornerstone of the country's economy, is buckling under pressure as major manufacturers announce sweeping job cuts.
BMW plans to cut 8,000 jobs worldwide, dpa reported Wednesday, citing multiple sources. According to dpa, BMW intends to reduce its German workforce through natural attrition such as retirements, as well as a voluntary redundancy program running from October through the end of next year. The cuts will target administrative and research and development positions, sparing the production workforce.
BMW, headquartered in Munich, employs about 154,000 people globally, roughly 84,000 of whom work in Germany.
Reuters reported Wednesday that BMW CEO Milan Nedeljkovic told an employee assembly in Munich that "the rules of the automotive industry have fundamentally changed, and so has the foundation that underpinned BMW's business model," adding that the job cuts were essential to restoring profitability.
Germany's auto industry has been deepening its crisis as weak sales in China collide with US tariffs and conflict in the Middle East. Volkswagen, Mercedes-Benz, Audi and Porsche had all previously announced large-scale layoffs. Volkswagen said it could pursue a restructuring plan centered on cutting up to 100,000 jobs and closing four factories in Germany. BMW had been regarded as relatively stable by comparison, but has recently struggled with a prolonged sales slump in China.
keg@heraldcorp.com
