BMW plans to cut around 8,000 jobs by the end of 2027 through a voluntary redundancy programme it has already agreed with its works council, according to Reuters. The cuts will land almost entirely in Germany, targeting administration and development roles, while factory floors and production lines stay untouched. Roughly 40,000 of BMW's 85,000 permanent German employees, nearly half its domestic workforce, will be offered voluntary exit packages starting in October, with most departures expected to happen through 2027. The company employs around 154,500 people worldwide, so this trims a meaningful slice of its total headcount.
The pressure behind this decision has been building for months. BMW cut its profit outlook in June after business in China came in far weaker than expected, with vehicle deliveries there falling 30% year-on-year in the three months through June, already at their lowest point since 2017 the year before. Add in US tariffs and thinning margins on electric vehicles, and CEO Milan Nedeljkovic told staff this week that the rules governing the auto industry had shifted enough to alter BMW's business model at its foundation.
BMW is not alone in this. Volkswagen, Mercedes-Benz, Audi, and Porsche have all announced their own rounds of cuts as Germany's auto giants grapple with the same combination of Chinese competition and softening demand. Horst Ott, who heads IG Metall's Bavarian branch and sits on BMW's supervisory board, acknowledged the company is responding to the China slump while trying to keep its German sites competitive, though he was quick to note that collective bargaining protections remain non-negotiable regardless of how deep the cuts go.
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