Dec 21st, 2007 by RJ Menezes
BMW says it needs to lose some weight. It’s gonna trim some fat in 2008 in the form of thousands of jobs in Europe. The German auto maker has announced the plans as a way to keep costs down in the new year.
German publication Der Spiegel, says the automaker could trim as many as 8,000 jobs in 2008. A similar report in the Associated Press quoted a BMW spokesman in saying many of the cuts could come in Germany and would likely involve temporary workers.
BMW’s worldwide employment is just over 100,000 workers. This includes the company’s assembly plant in South Carolina. As an independent company it is very crucial to business to avoid digging yourself in a hole.
BMW spokes people said costs related to raw materials and new product development have risen in the past year, eating into profits. In the first nine months, BMW said total revenues rose to $58 billion, but profits fell to $3 billion.
Lots of new products in such a short period of time. It’s make it or break it time for the folks at Munich.