BMW has announced plans to cut about 8,000 jobs in Germany by the end of 2027 through a voluntary redundancy programme, becoming 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, while 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, 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.
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, where vehicle demand has declined sharply in recent months.
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.
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, when investors will be watching closely for further insight into the company’s financial performance and outlook.
Goodness Anunobi
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