German luxury automaker BMW will reduce its global workforce by around 8,000 employees by the end of 2027, according to company sources.
The job cuts will be carried out through a voluntary redundancy programme targeting administration and development divisions in Germany. Production workers will not be impacted, the company confirmed.
Roughly 40,000 of BMW’s 85,000 permanent employees in Germany will be eligible to apply from October. The Munich-based group currently employs about 1,54,000 people worldwide.
Milan Nedeljkovic, CEO, told staff at a recent works meeting that the auto industry’s “rules of the game” have changed substantially. He cited weak demand in China, intense competition from local EV makers, US tariffs, and slimmer margins on electric vehicles as key challenges forcing the restructuring.
BMW had already lowered its profit outlook in June after sales in China dropped sharply. The company said it will now accelerate cost-cutting to protect profitability.
The move puts BMW in line with other German manufacturers facing similar pressure. Volkswagen is planning one of its biggest restructurings, with up to 100,000 job cuts across 10 brands under discussion. Mercedes-Benz has also rolled out a voluntary exit scheme. Porsche, part of the VW Group, announced plans to cut 20% of staff by 2035.
Industry analysts note the cuts reflect broader turbulence in Europe’s auto sector as companies balance heavy investments in electrification with slowing global demand and trade barriers.
BMW’s press office confirmed a restructuring plan for white-collar roles but did not disclose exact figures. The agreement with the works council took about six weeks to negotiate.
With this round of reductions, BMW aims to streamline operations while preparing for tougher competition and a prolonged shift to electric mobility.
