BMW plans to offer voluntary redundancy to nearly half of its permanent workforce in Germany as it looks to cut around 8,000 jobs by 2027.
The move comes as the carmaker faces pressure from lower electric vehicle margins, US tariffs and intense competition in China.
The company has so far avoided major strategy shifts, but weakening demand in China has weighed on its business.
German luxury carmaker BMW plans to offer voluntary redundancy to nearly half of its permanent workforce in Germany as part of a broader effort to reduce around 8,000 jobs by the end of 2027, according to an AFP report.
The report said around 40,000 of BMW's nearly 85,000 permanent employees in Germany will receive voluntary redundancy offers from October. However, production line workers will not be part of the programme.
4 July 2026
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The source told the news agency that the company expects its workforce to "ultimately be reduced by around 8,000 people by the end of 2027," adding that planning is being carried out on that basis.
Voluntary Exit for Desk Staff
The redundancy programme will be limited to employees in desk-based roles across Germany. BMW employs around 154,000 people globally. The report added that discussions between BMW's management and its works council took around six weeks before the plan was finalised.
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BMW has not announced any compulsory layoffs, with the company instead opting for voluntary exits as it looks to lower costs.
China, EV Pressures Mount
Like several other German automakers, BMW is facing pressure from shrinking margins on electric vehicles, US tariffs and growing competition from Chinese manufacturers.
According to AFP, rivals including Volkswagen and Mercedes-Benz have also announced workforce reduction programmes as the industry adapts to changing market conditions.
Although BMW has generally fared better than many of its peers by continuing to offer both petrol and diesel vehicles alongside electric models, it issued a profit warning last month after saying business conditions in China had deteriorated further than expected. The report noted that BMW's vehicle deliveries in China fell 30% year-on-year in the three months ended June, with sales in the country already at their lowest level since 2017 last year.
