BMW to Lay Off 10,000 Employees to Stay Afloat

While many car companies have resumed production and commercial operations in factories and offices around the world, the past few months have been difficult for the entire industry.

Luxury car manufacturers have been getting a lot of bumps lately, and BMW is no exception. The coronavirus seriously hit the company's positions, because dealerships have been closed for several months, thus lowering the level of sales in all world markets.

BMW to Lay Off 10,000 Employees to Stay Afloat photo 2

According to Reuters, a source at BMW confirmed that the German manufacturer was going to lay off at least 10,000 workers in an effort to reduce capacities and rising costs. BMW said that it reached an agreement with the board regarding measures to preserve the company at such a time: a key factor was the “personnel issue.” As with any company, the need to cut people is a last resort and BMW has done everything possible to ensure that employees are compensated enough.

Besides, the creation of an alliance with Daimler was suspended for an indefinite period, because after much analysis and verification, the companies decided to focus on their separate and existing development paths. Although there is a chance to resume the project, both companies are free to work with other partners.

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