BMW Wants to Reduce Costs by Creating 5,000 Jobs (And Struggles To Make It Happen)

BMW Wants to Reduce Costs by Creating 5,000 Jobs (And Struggles To Make It Happen

German automaker Volkswagen is also looking at early retirement plans.

was on fire last week. The German automaker has introduced three new models to its lineup: the 5 Series and 6 Series. All of them feature electrified powertrains.

But that’s not all the news out of Munich. According to a report from, BMW wants to reduce 5,000 jobs in its workforce due to the adverse economic effects of the coronavirus epidemic. This is a task that the company is having difficulty completing.

Automotive News Europe
.Due to the coronavirus pandemic, there has been a decline in car sales. Car companies were faced with a difficult recovery, and they had to reduce their workforce to keep costs down.

BMW Wants to Reduce Costs by Creating 5,000 Jobs (And Struggles To Make It Happen

An internal posting from BMW CFO Nicolas Pete revealing the difficulties in achieving the headcount-reduction target was the source of the news. The company confirmed the information to the publication. These measures include reducing work hours and putting employees on unpaid leave, but they are not enough. According to Automotive News Europe, the company may also offer early retirement plans.

BMW typically loses 5,000 jobs each year and has to replace them. But this year, the situation is different because the current employees are now thinking twice about quitting their jobs, which is yet another side effect of the pandemic.

BMW is not the only automaker to reduce jobs to combat the negative effects of coronavirus. McLaren declared last week that it was “severely impacted” by these difficult times and had to eliminate a quarter its workforce. This equated to 1,200 jobs