BMW plans to cut several thousand jobs in Germany by the end of 2027 through a voluntary layoff program. The company is the latest major carmaker to reduce staff as the German car industry faces low demand, rising costs, and increased competition from China.
The company expects to cut about 8,000 jobs worldwide, with most of the reductions happening in Germany.
The voluntary layoff plan, agreed with employee representatives, will primarily affect office and development roles. Factory workers will not be impacted. BMW employs about 150,000 people worldwide. CEO Milan Nedeljkovic told staff that the industry has changed significantly and that the company needs to cut costs more quickly to boost profits.
BMW, one of Germany’s leading carmakers, lowered its profit forecast in June after sales in China fell more than expected. Like other companies, BMW faces high costs from switching to electric cars, strong competition from Chinese brands, and the impact of US tariffs.
Other German carmakers make similar moves
BMW’s announcement follows several changes in Germany’s car industry. Earlier this week, Volkswagen said it plans to cut up to 100,000 jobs as part of a major reorganisation. This plan also includes reducing the number of car models and closing four factories, though discussions with workers are still in progress.
Mercedes-Benz has also agreed to cut tens of thousands of jobs to save money. Porsche announced this week that it will reduce its staff by about 20% by 2035, resulting in around 9,000 job losses. Audi, which is also part of Volkswagen, is facing pressure as workers protest planned factory closures.
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