Following in the footsteps of Mercedes and Audi: BMW plans to cut 8,000 jobs worldwide
29 July 16:15
German automaker BMW is preparing to cut several thousand jobs by the end of 2027. Reuters reported this on Wednesday, July 29, according to "Komersant Ukrainian".
According to media reports, the cuts at BMW will affect about 8,000 people worldwide. The cuts will be carried out through natural attrition, as well as through a severance package program for those who agree to leave the company voluntarily, according to anonymous sources close to the company.
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Reuters cites a statement from the company’s press secretary, which the agency received in response to a request made after a meeting between the board of directors and employees. The statement indicates that an agreement was reached on a severance package for employees in the development and management departments. At the same time, the production department will not be affected by the cuts, according to the statement.
Compensation payments for employees who leave voluntarily
BMW’s workforce reductions under the severance program will take place from October 2026 through the end of 2027. The program is open to all employees in Germany, except those working directly in production, the publication notes.
The BMW Group has a total of 154,000 employees. Since more than half of them (84,000 as of the first half of 2026) work in Germany and the severance program is to be implemented there, it is highly likely that more than half of the positions subject to cuts will be in Germany, the authors believe.
It is not yet clear how much money BMW will allocate to implement the layoff program. In June, the company’s chief financial officer, Walter Mertl, indicated that one-time costs related to the company’s restructuring would amount to about one billion euros. However, he did not specify whether these funds would be allocated entirely to workforce reductions.
Other major automakers—including Volkswagen, Mercedes, Audi, and Porsche—had previously announced plans for workforce reductions, some on an even larger scale. BMW remained the last major automaker that had not yet reported a similar program. Observers cite increased competition for automakers in China from Chinese brands as one of the reasons for the current developments. The effects of the crisis in the Middle East and the global economic downturn are also having an impact.
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