Despite the impressive growth and revenue in 2008, BMW AG is cutting 850 jobs at its MINI plant in Oxford. In 2008, MINI manufactured 235, 000 at the plant, but the sales had slumped 34.5% percent in January.
The plant will now operate only 5 days a week and as expected, the decision was received with a lot of criticism.
“It is tough enough for workers in those car companies who have seen their market collapse in recent months, but BMW makes a top-selling product in the Mini and owed it to their staff to treat them better,” said Unite Joint General Secretary Tony Woodley in a statement.
BMW/MINI is not the only company cutting jobs in the UK, major car makers including Nissan, Ford, Jaguar Land Rover and Aston Martin have also announced over 3,000 job cuts in recent months out of the 800,000 auto workers.
British government is also putting together a loan to bail out the car industry, somewhere around $3.3 billion dollars.[Source: Reuters ]