German carmaker Bayerische Motoren Werke AG (BMW) on Friday announced its intention to reduce 6 thousand workplaces because of the negative impact of the pandemic coronavirus COVID-19.
Under this plan the company, in addition to the layoffs, will offer employees the possibility of earlier retirement and will not renew temporary contracts or to fill open positions.
In addition, BMW will suspend cooperation with Mercedes-Benz (part of Daimler) in a joint venture for developments in technology for self-driving cars, according to MarketWatch, reports take-profit.org.
It was created in early 2019. BMW currently has about 126 thousand people worldwide.
The company used the scheme of shortened work hours in which the German government partially pays wages to employees for the “lost” hours.
In may, BMW said that more than 30 thousand people are employed under this scheme. However, on Friday the company said that it needed to take further action because of the coronavirus pandemic and its consequences.
The BMW representative noted that virtually all the reduced 6 thousand jobs will fall on Germany.
Car sales in recent months fell, and the largest industry players were forced to close production due to the outbreak of disease and restrictive measures associated with it.
In Germany in may sales of new cars fell by 50% compared to the same month last year, including to halve sales of Volkswagen, BMW and Daimler. In General, the European Union registration of new cars fell by 52% last month after a decline of more than 78% in April.
Stock quotes BMW at the end of trading on Friday fell by 0.3%. The capitalization of the automaker since the beginning of this year fell by more than 22% and is currently around a total of 36.9 billion euros.