BMW has announced plans to cut about 8,000 jobs in Germany by the end of 2027 through a voluntary redundancy programme.
The move makes it the latest major automaker to reduce its workforce as weak demand and mounting cost pressures weigh on the country’s automotive industry.
The workforce reduction, agreed with the company’s works council, will primarily affect employees in administrative and research and development divisions.
Production workers will be excluded from the programme, a company spokesperson said.
A source familiar with the matter said the restructuring is expected to reduce BMW’s workforce by around 8,000 employees. The Munich-based automaker currently employs about 150,000 people worldwide.
BMW joins other German automakers implementing cost-cutting measures as the industry grapples with the costly transition to electric vehicles.
It also faces intensifying competition from Chinese manufacturers and the impact of US tariffs. Volkswagen and Mercedes-Benz have already announced plans to eliminate tens of thousands of jobs.
Earlier this week, Porsche, part of the Volkswagen Group, expanded its restructuring programme, targeting a 20% reduction in its workforce by 2035.
Meanwhile, thousands of Audi employees staged protests on Wednesday at the company’s Neckarsulm plant, one of four German sites threatened with closure under Volkswagen’s broader restructuring plans.
Profit Warning, China Slowdown and CEO’s Warning to Staff
BMW, long regarded as one of Germany’s more resilient automakers, revised its profit outlook in June after reporting weaker-than-expected sales in China.
Vehicle demand in the country has declined sharply in recent months, hitting revenue and margins.
Following the revised outlook, Chief Executive Milan Nedeljkovic said the company would accelerate its cost-cutting efforts to improve profitability and strengthen its competitive position.
Nedeljkovic took over as CEO in 2024 and has been under pressure to deliver results in a fast-changing market.
Addressing employees at a workers’ assembly in Munich on Wednesday, Nedeljkovic said the automotive industry had undergone fundamental changes that were reshaping the market and challenging BMW’s long-standing business model, according to a participant at the meeting.
He acknowledged the difficult business environment ahead but said the planned measures were essential to improving BMW’s financial performance, strengthening its competitiveness and supporting its long-term growth.
BMW is scheduled to report its second-quarter earnings on Thursday.
Investors will be watching closely for further insight into the company’s financial performance and outlook, including how the job cuts and other cost-saving steps are expected to affect profits.
One thing China will do is maintain its name and title as “The world’s largest market”, “Largest production market”. This industrial war and humanoid robots replacement is low key a power struggle, unfortunately weaker sections are loosing.