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German car giant BMW slated to slash 6,000 jobs this year

German high-end carmaker BMW will slash 6,000 of its over 120,000 jobs worldwide this year, a spokesman told AFP Friday, as the industry battles a demand trough and production setbacks from the coronavirus pandemic.

Published: 19 June 2020 16:47 CEST
German car giant BMW slated to slash 6,000 jobs this year
A car being assembled in BMW's Leipzig plant. Photo: DPA

The 6,000 positions make up a considerable chunk of BMW's more than 120,000 worldwide, with the job cuts coming as the industry battles a demand trough and production setbacks from the coronavirus pandemic.

Meanwhile BMW and Daimler-owned Mercedes “are putting their cooperation on
development of next-generation technology for automated driving on hold,” the
Munich and Stuttgart-based firms said in a joint statement.

READ ALSO: 'Germans are not tired of cars': Numbers of vehicles on the road continues to rise

The two groups had joined forces to catch up their American and Chinese competitors, including Tesla and Google, which have a head start.

It marks the first staff reduction that the company has made since the 2008 financial crisis, reported Germany's Handelsblatt.

But talks begun last year had showed that “in view of the expense involved
in creating a shared technology platform, as well as current business and economic conditions, the timing is not right,” they said.

“Cooperation may be resumed at a later date,” the two firms added.

BMW had already announced in May that it would bulk up a cost-cutting programme to tackle the economic devastation of infection control measures introduced to fight the coronavirus.

Bosses had already planned to reduce investments, while they hoped to slash labour costs via attrition rather than the additional measures announced Friday.

Now BMW has resorted to slashing two hours a week for some workers and
granting others an extra eight days' holiday per year in exchange for lower pay.

Like Daimler and industry behemoth Volkswagen, BMW expects the pandemic to
inflict an operating loss for the second quarter.

Many of its showrooms had to be closed for weeks.

And over the full year, its pre-tax profit is expected to be “significantly lower” than 2019's €7.1 billion.

Europe's auto market collapsed by 52.3 percent year-on-year in May, although the plunge was less steep than in April.

Meanwhile 41.5 percent fewer cars were sold in the first five months than last year.

A shrinking car market, a costly transition to electric power and harsh new
EU penalties for excessive CO2 emissions were all already sapping Germany's
flagship industrial sector before pandemic lockdowns bit.

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WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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