The automobile industry has been facing several issues in the smooth running of businesses due to the coronavirus impact. While many car companies have resumed manufacturing and business operations at factories and offices around the world, the past few months have been tough on the books for the entire industry.
Luxury automobile manufacturers on the other hand have been taking a ton of blows lately, and BMW is the latest to make some changes to keep them afloat. According to a Reuters report, BMW has confirmed that the German manufacturer is looking at axing at least 10,000 contract workers, in an effort to reduce capacity and help mitigate growing costs.
The Munich-based company said earlier on Friday it had reached an agreement with the works council for a package of “personnel measures for a sustainable future”.
This is reportedly the biggest reduction in the workforce for BMW since 2009. Several measures have already been decided, such as the use of early retirement and a reduction in the number of hours to be worked.
In addition, a number of vacant positions will not be replaced. BMW will continue to invest in training, however, and promises to hire 1,200 trainees this year and in 2021.
Around 126,000 people work for the Bavarian manufacturer worldwide. In general, some 5,000 employees leave the company every year, half of whom retire.
Other than BMW, several luxury automakers have decided to go ahead with layoffs to save costs and tide over the crisis. Bentley, Jaguar Land Rover and Aston Martin, all have laid off a significant number of employees recently.
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