BMW plans to cut up to 8,000 jobs by the end of 2027. Starting in October, the Munich-based carmaker will offer individual severance packages to around 40,000 of its roughly 85,000 employees in Germany, news agency AFP learned from company sources on Wednesday. The affected roles are in administrative and office functions, not in production.
According to the sources, the company expects its workforce to shrink by 8,000 as a result of the program by the end of 2027. "That would be roughly the goal — the target figure," the sources said. The first departures are expected to occur later this year, with the severance program set to gain momentum next year. Its effects are expected to show up positively in the company's financial figures from 2028 onward.
The program, which according to company sources has largely been negotiated with employee representatives, is expected to cost BMW a sum in the hundreds of millions of euros, although this is currently still "hard to estimate." "It depends on how many take the severance," the sources said. Worldwide, BMW employs around 154,000 people.
Germany's automakers are currently in the grip of a crisis. While electric vehicle sales are gaining momentum, their profit margins remain smaller than those of combustion models. At the same time, companies are under strain from US government tariffs and, in particular, from a rapidly eroding business in China. At Volkswagen, the largest German and European carmaker, up to 100,000 job cuts and several plant closures are under consideration. Mercedes-Benz is likewise running its own severance program.
BMW had long been regarded as the most resilient of Germany's carmakers, but last month the Munich-based group issued a profit warning due to a slump in China. Sales in the world's largest car market are reportedly developing even worse than previously expected.
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