BMW confirms 8,100 job cuts worldwide

FRANKFURT (AFP) — The German luxury carmaker BMW said Wednesday that a restructuring plan aimed at boosting profitability would see the overall elimination of 8,100 jobs worldwide.

Part-time workers would be hit hardest, with 5,000 fewer posts, half of which had already been cut last year, a BMW spokesman told AFP.

The other half would be let go by the end of 2008, he said.

More than 3,000 full-time jobs would also disappear, including 2,500 in Germany and 600 in foreign distribution networks on the basis of voluntary departures or non-replacement of workers who retired, BMW board member Ernst Baumann said in a statement.

BMW announced in late December a broad restructuring of its workforce as part of a plan to increase the profit on its cars, which have sold well but earned less for the group than rival Daimler makes with its Mercedes brand.

"We are working on improving our margins" to maintain BMW in a competitive position, Baumann said.

In September, BMW boss Norbert Reithofer unveiled a five-year plan dubbed "Number One" that was aimed at achieving a profit margin of between eight to 10 percent by 2012.

The group wants to increase worker productivity, which is already growing, "by five to 10 percent yearly" the statement said.

Because sales could be affected by a global economic slowdown, and the company hit by the euro's persistent strength against other major currencies, BMW planned to "adapt" its workforce.

The plan was expected to cut costs by up to 500 million euros (750 million dollars) a year by 2009, the company reiterated, confirming a figure given in December.

The German trade union IG Metall quickly slammed a "change in culture" by BMW managers.

"Mister Baumann obviously believes that he can be a troublemaker and boost the share price by keeping workers permanently insecure," said a statement issued by Werner Neugebauer, head of the union's Bavarian chapter.

Under a deal reached by the union with BMW, it can only reduce its workforce through voluntary departures, IG Metall said.

"I don't think that 2,500 workers will voluntarily sign a release, and from what we hear from the work sites, they need part-time workers to build cars," Neugebauer added.