Luxury car maker BMW AG revealed nowadays its plans to slash another 5,600 jobs by the end of 2008 as part of a restructuring effort aimed at boosting company’s profits. Its decision is expected to bring annual savings of 500 million euros ($752 million) starting in 2009.

According to a BMW spokesman, part-time workers would take the hardest hit, with 5,000 fewer posts. Half of them had already been eliminated final year and the rest are set to be cut by the end of 2008. The restructuring plan plus involves more than 3,000 full-time jobs, including 2,500 in Germany, and 600 other positions in other regions.

Thus, the restructuring plan comes with a total number of 8,100 jobs cuts. that is 7.5% of BMW’s work force, which totals nearly 108,000 workers.

Ernst Baumann, the company’s head of personnel, said BMW may compose more cuts whether the dollar continues to decline. Baumann did not specify the total costs that the restructuring plan would bring, but he believes expenses will aftereffect in the “three-digit million” euro range.

Continue reading BMW to slash 8,100 jobs to boost profitability

Original post by Eliza Popescu

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