BMW Set To Cut 20 Percent Of Management Jobs

BMW intends to downsize certain divisions, and consequently, management positions will be further reduced. Approximately one-fifth of jobs will also disappear in the layers below managers. “We are improving our structures and cost structure so that we can withstand the increasingly fierce competition that will characterize this sector in the coming years,” said Milan Nedeljković, CEO of BMW.

In July, BMW reached an agreement to reduce the number of office jobs in Germany. This involved a total of 8,000 jobs. Like the rest of the German automotive industry, BMW is suffering from declining sales due to weak demand and increasing competition from China.

The head of BMW acknowledges that, partly due to these challenging market conditions, there is urgency in repositioning the brand. To this end, it is focusing primarily on its premium brands. “At the top end of the portfolio, BMW, BMW M, and Rolls-Royce will be refined to make optimal use of their strengths and capitalize on additional profit potential.” In addition, the brand intends to increase production specifically in China and expand exports to Southeast Asia from there.

Nedeljković also believes that BMW should seek closer cooperation with competitors within the European Union to increase the company’s resilience. That cooperation should safeguard the supply of critical raw materials and components, including semiconductors.

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