BMW to Cut Annual Labour Costs by 500 Million Euros

FRANKFURT - February 6, 2008: BMW unveiled details early today of a broad cost-savings plan that includes a sharp cut in personnel expenses.

With the elimination of "several thousand posts" announced in late December and productivity gains, BMW wants to reach, "starting in 2009, cost reductions of up to 500 million euros (730 million dollars) a year," a statement quoted finance director Michael Ganal as saying.

The group will propose measures such as voluntary departures worked out with trade unions and will not replace workers who retire or otherwise gave up their jobs, the statement said.

The exact size of the staff reduction was not provided but press reports regularly put it at 8,000 posts.

Cutting the workforce is part of an overall strategy presented late last year by chief executive Norbert Reithofer to improve profitability at the Munich-based auto manufacturer.