This paper considers a Brushless Direct Current (BLDC) machine prototype with six poles and 36 stator slots including a three phase double-layered distributed winding. Presented modifications of rotor construction are identified in order to achieve the best possible compromise of eddy-current losses and cogging torque characteristics. The permanent magnet (PM) eddy-current loss is relatively low compared with the iron loss; it may cause significant heating of the PMs due to the relatively poor heat dissipation from the rotor and it results in partial irreversible demagnetization. A reduction in both losses is achieved by magnet segmentation mounted on the rotor. Various numbers of magnet segmentation is analysed. The presented work concerns the computation of the no-load iron loss in the stator, rotor yoke and eddy-current loss in the magnets. It is shown that the construction of the rotor with segmented magnets can significantly reduce the PM loss (eddy-current loss). The eddy-current loss in PMs is caused by several machine features; the winding structure and large stator slot openings cause flux den sity variations that induce eddy-currents in the PMs. The effect of these changes on the BLDC motor design is examined in order to improve the machine performance. 3-D finite-element analysis (FEA) is used to investigate the electromagnetic behaviour of the BLDC motor.