BMW layoffs: 8,000 desk jobs to be axed — what is forcing German automaker to hit the brakes?
BMW on Wednesday said it will reduce several thousand jobs in Germany by the end of 2027 through a voluntary redundancy programme, becoming the latest
BMW on Wednesday said it will reduce several thousand jobs in Germany by the end of 2027 through a voluntary redundancy programme, becoming the latest German automaker to trim its workforce as slowing demand and shrinking profits weigh on the industry, reported CNBC. The severance plan, agreed upon with the company's works council, will primarily affect administrative and development roles, while production workers will not be impacted, a BMW spokesperson said. According to the report, citing a person familiar with the matter, the German luxury carmaker aims to reduce its workforce by around 8,000 employees. BMW currently has a global workforce of about 150,000. Competition from Chinese carmakers, US tariffs take toll The move follows similar cost-cutting initiatives by German rivals Volkswagen and Mercedes-Benz, which have announced plans to eliminate tens of thousands of jobs as the industry grapples with the expensive transition to electric vehicles, increasing competition from Chinese manufacturers and the impact of US tariffs.
Earlier this week, Porsche, a Volkswagen Group brand, 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 facilities facing possible closure under Volkswagen's restructuring strategy. Full-year profit outlook cut BMW, long regarded as one of the more resilient players in Germany's auto sector, lowered its full-year profit forecast in June after 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-saving initiatives. Speaking to employees on Wednesday, Nedeljkovic said the automotive industry's operating environment had fundamentally changed, requiring BMW to adapt its business model, according to CNBC, citing a participant at a workers' meeting in Munich.
He acknowledged that the company faces a difficult period but said the restructuring measures are necessary to improve profitability over the long term. Bloomberg also reported that BMW plans to streamline its management structure in the coming months as part of the broader cost-cutting exercise. BMW shares climbed as much as 1.9% in Frankfurt following the announcement, although the stock remains down by more than one-third so far this year. The automaker is also dealing with headwinds from the conflict in the Middle East and US tariffs. It recently decided to withdraw from this year's Paris Motor Show as it reassesses spending priorities. Last month, the company announced that it would intensify its existing cost-reduction programme for 2026. Reducing jobs in Germany remains an expensive process because strong labour protections generally prevent layoffs, forcing companies to rely on voluntary exit schemes with attractive severance packages.
The BriefWire