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      12-21-2007, 02:09 PM   #1
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Post BMW to Reduce Workforce in EU6 Billion Savings Plan

If this is inappropriate for this forum let me know. Just thought it was interesting.

BMW to Reduce Workforce in EU6 Billion Savings Plan
(Update1) (Bloomberg December 21) -- Bayerische Motoren Werke AG, the world's largest luxury carmaker, will scale back its workforce under a plan announced three months ago to boost profit with 6 billion euros ($8.6 billion) in spending cuts. The carmaker will eliminate jobs by not replacing people who leave and through contract agreements on work-time flexibility, said Mathias Schmidt, a spokesman at Munich-based BMW. Schmidt wouldn't confirm a report today in German magazine Der Spiegel's online edition that 8,000 positions will be cut next year. Chief Executive Officer Norbert Reithofer outlined the five- year savings program in September after BMW's profitability lost ground to Daimler AG's Mercedes-Benz Cars division. The automotive division aims by 2012 to raise its return on capital employed to 26 percent from 22 percent last year, and reach a return on sales of 8 percent to 10 percent, versus 5.9 percent.