BMW To Axe About 8,000 Jobs By The End Of 2027
Article Summary
- BMW will reduce its workforce through a a voluntary severance program already agreed with employee representatives.
- The BMW Group employed 154,540 people at the end of 2025.
- Most of the 8,000 positions will be eliminated in Germany.
While most of its rivals were announcing drastic cost-cutting measures, BMW appeared to have avoided the need to tighten its belt. However, that’s sadly no longer the case. A company spokesperson told Reuters (via Automotive News Europe) that around 8,000 jobs will be eliminated. Most of the layoffs will take place in Germany, affecting administrative staff and the R&D department.
On the bright side, BMW won’t be cutting factory jobs. It’s a sign that the Leipzig, Munich, Dingolfing, and Regensburg plants are operating at a healthy pace, with enough customer demand to keep production lines busy. To soften the blow, affected employees will receive severance packages. The job cuts represent about 5% of the company’s workforce. At the end of last year, the BMW Group employed 154,540 people, 1.9% fewer than the year before.
Reuters reports that BMW CEO Milan Nedeljkovic will meet with works council leaders during a company-wide staff meeting tomorrow to discuss the voluntary reduction program, which is expected to begin in October and run through the end of next year. It’s not the first cost-cutting measure announced recently. The company has also decided to skip the 2026 Paris Motor Show, despite having committed to attending just a few months ago.
Problems In China
As for what’s driving the restructuring, BMW’s difficult situation in China is likely a major factor. Back in 2021, when sales were booming despite the coronavirus pandemic, BMW and MINI reached a record 847,900 deliveries. A lot has changed since then, with demand dropping to 626,000 units last year. Judging by the half-year results, 2026 is shaping up to be even worse. Through June, the two brands were down 20.4% to 261,773 vehicles compared with the first six months of last year.
The importance of the Chinese market cannot be overstated. Even with sales in free fall, China remains the BMW Group’s largest single market. In 2025, one in four BMW and MINI vehicles was delivered to a customer in China. Sales there were nearly equal to the combined total for Germany, Italy, France, and the UK (25.4% versus 25.8%).
BMW is hopeful that the Neue Klasse wave of models will help turn things around in the world’s largest car market. Long-wheelbase versions of the i3, iX3, and X5/iX5 can’t arrive soon enough to entice buyers back into BMW showrooms instead of choosing a domestic brand.
Source: Reuters via Automotive News Europe
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