German luxury carmaker BMW plans to eliminate up to 8,000 jobs in Germany through a voluntary redundancy programme as the company seeks to reduce costs and adapt to mounting competition from Chinese electric vehicle (EV) manufacturers and broader challenges facing the global automotive industry.
The job cuts will primarily affect the company's administration and development divisions, while production operations will remain unaffected. The voluntary redundancy and severance programme has been agreed upon by BMW management and employee representatives. BMW currently employs around 160,000 people worldwide, The Guardian reported.
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The restructuring follows the appointment of Milan Nedeljković as BMW's chief executive in May 2026. The company said the measures are part of a broader effort to adapt to changing market conditions, technological transformation and shifting industry dynamics, particularly in China.
According to a spokesperson, BMW is actively adapting to profound industry shifts, “The BMW Group is proactively shaping the profound changes taking place in its operating environment. These include the technological transformation of the automotive industry, geopolitical uncertainties, changing market conditions and developments in China.”
An anonymous source informed the AFP news agency that the company expects to cut roughly 8,000 jobs by the end of 2027, adding that current corporate plans are based on this projection.
European carmakers, including BMW, have been facing increasing pressure from Chinese EV manufacturers, which have rapidly expanded their market share through competitive pricing and technological advancements. Intense price wars in China, once one of the most profitable markets for European automotive brands, have further squeezed margins and forced manufacturers to reassess their strategies.
Apart from competition from Chinese companies, the industry is also grappling with the costly transition from internal combustion engine vehicles to electric mobility, geopolitical uncertainty and the impact of US tariffs.
In response, Volkswagen, Stellantis and Ford have teamed up with Chinese companies to stay competitive and improve manufacturing efficiency.
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BMW's restructuring reflects a wider trend across Germany's automotive sector. Volkswagen has already announced plans to cut up to 100,000 jobs, alongside proposals to close four production plants and significantly reduce its model range. Porsche is also undergoing a major restructuring programme, with plans to eliminate around 9,000 positions by 2035.
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