BMW plans to reduce its global workforce by around 8,000 jobs as part of a major cost-cutting programme aimed at improving efficiency and strengthening long-term competitiveness, according to company officials and media reports.
The German luxury carmaker has agreed with its works council to launch a voluntary redundancy programme focused on administrative and development roles, while ruling out compulsory layoffs and protecting production jobs.
The programme is expected to begin in October 2026 and continue through the end of 2027, with annual savings estimated at €1 billion starting in 2028, according to German newspaper Handelsblatt.
BMW employed 154,540 people worldwide at the end of 2025, with more than half of its workforce based in Germany. A significant share of the planned job reductions is therefore expected to take place across its German operations.
Administrative and development teams in Munich, Regensburg, Dingolfing and Leipzig are expected to be among the most affected. BMW's Research and Innovation Centre (FIZ) in Munich, which employs around 25,000 engineers, developers and business specialists, is also expected to see workforce reductions.
The company said the programme would rely entirely on voluntary participation, making it the largest voluntary redundancy initiative in BMW's history.
Severance packages will be determined based on employees' salaries and years of service. BMW added that the overall cost of the programme remains uncertain because it will depend on how many employees choose to participate.
The agreement follows several weeks of negotiations between BMW management and employee representatives before being presented to staff at the company's headquarters in Munich.
BMW has been facing increasing pressure from slowing demand in China, rising competition from Chinese electric vehicle manufacturers and the industry's transition toward electrification and digital mobility.
Earlier this year, the automaker lowered its 2026 profit outlook, citing weaker market conditions in China and geopolitical uncertainties affecting global demand.
BMW joins several major German automakers that have recently announced workforce reductions to improve profitability.
Mercedes-Benz has already introduced a voluntary redundancy programme, while Porsche recently announced plans to eliminate an additional 5,000 jobs by 2035, bringing its total planned workforce reduction to around 9,400 positions.
Volkswagen is also pursuing broader restructuring measures, with management seeking to significantly expand planned workforce reductions across the group as Europe's automotive industry adapts to changing market conditions.
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