BMW announced plans to cut around 8,000 jobs globally by the end of 2027, accounting for roughly 5% of its 154,000-strong workforce worldwide [1, 2, 3, 4]. More than half of these reductions will occur in Germany, focusing on non-production roles such as research and development, administration, planning, and management [1, 2, 3, 4]. BMW employs about 85,000 full-time workers in Germany, and approximately 40,000 of them will be offered voluntary severance starting October 2026 [1, 2, 3]. Production line jobs are excluded from the layoffs [1, 2, 3, 4].

The company said the job cuts will be achieved mainly through voluntary departures and natural attrition, aiming to complete the process by the end of 2027 [1, 2, 3, 4]. BMW expects to incur around 1 billion euros in one-time severance costs but plans to save about 1 billion euros annually from 2028 onward [3, 4].

The cuts come as BMW faces shrinking profitability in electric vehicles, rising tariffs in the U.S., intensified competition in China, and the need to reduce overall operating expenses [1, 2, 3, 4, 5]. BMW’s car deliveries in China fell roughly 30% in the first half of 2026 due to stronger competition from local electric vehicle makers [1, 2, 3, 4, 5].

BMW’s second-quarter 2026 group sales totaled 31.26 billion euros, below market expectations, while automotive revenue reached 27.16 billion euros, also missing estimates [5]. The automotive EBIT margin dropped from 5.4% a year earlier to 2.3%, slightly above analyst forecasts but reflecting difficult market conditions [5]. BMW CEO Milan Nedeljkovic said, "Facing the sharp downturn in the Chinese automotive market and changes in the industry environment, the group must accelerate organizational and operational adjustments to maintain long-term competitiveness" [5].

European rivals including Volkswagen, Mercedes-Benz, Porsche, and Aston Martin have announced similar restructuring and workforce reduction plans [1, 4, 6].

BMW will begin offering voluntary severance packages to around 40,000 eligible non-production employees in Germany starting October 2026 [1, 2, 3, 4]. The company plans to complete the global job cuts by December 31, 2027, with annual cost savings expected to take effect from January 1, 2028 [1, 2, 3, 4].