In the latest sign of deep structural distress across Europe’s automotive sector, BMW has announced plans to cut as many as 8,000 jobs worldwide by the end of 2027.
The Munich-based manufacturer, long considered the most resilient among Germany's luxury automakers, becomes the latest domestic brand to yield to market pressures driven by rising Chinese competitors and volatile international trade.
An agreement regarding workforce restructuring between BMW and employee representatives came after six weeks of relatively discreet negotiations.
Production unaffected
The job cuts will be achieved in Germany via natural attrition and a voluntary severance program set to run from October 2026 through late 2027. The program exclusively targets administration and development divisions, leaving direct vehicle production operations unaffected.
BMW has some 84,000 employees in Germany, making up over half of the automaker’s 154,000 global workforce. Given that, more than half of the affected positions are expected to be domestic cuts.
The announcement marks a decisive turn for newly appointed Chief Executive Milan Nedeljković, who stepped into the role in May following a career as head of production. Nedeljković issued a significant profit warning in June, pledging to accelerate efficiency measures amid shifting market realities.
CFO Walter Mertl previously indicated that restructuring costs could reach approximately €1 billion in one-time charges during the second half of the year.
Chinese competition
The automotive giant’s decision comes as European manufacturers face severe headwinds. For one thing, Chinese electric vehicle makers have eroded BMW’s market share in China and sparked aggressive price wars in that market, which has historically been a primary driver of European export profits.
At the same time, U.S. tariffs and heavy research expenditures required for the EV transition have squeezed profit margins further. Internal costs also rose as BMW heavily funded development for its upcoming Neue Klasse vehicle architecture. That investment is now tapering off alongside engineering personnel needs.
The last to fall
BMW had previously avoided the sweeping layoffs undertaken by its peers. Volkswagen recently confirmed plans to cut up to 100,000 jobs, while Porsche announced an additional 5,000 redundancies this week, bringing its total planned cuts to 9,000.
A BMW spokesperson stated that the group is “proactively shaping the profound changes taking place in its operating environment.” The company is scheduled to publish its full half-year financial results on Thursday.