BMW to cut 8,000 jobs in Germany by 2027 via voluntary redundancies

BMW will cut 8,000 jobs by the end of 2027 through a voluntary redundancy program, the company announced on Wednesday. The job cuts will primarily affect administrative and research and development roles in Germany.
The German car manufacturer, which employs around 154,000 people worldwide, is facing financial pressures due to a slump in sales in China. The voluntary redundancy program is expected to begin in October 2026 and will offer severance packages to employees in Germany.
BMW's new CEO, Milan Nedeljkovic, and the works council chairman, Martin Kimmich, presented the plans to employees in Munich on Wednesday. The company aims to achieve annual savings of around €1 billion from 2028 through this program.
The job cuts are part of a broader cost-saving drive in the German automotive industry, which is facing increased competition from Chinese manufacturers. BMW's decision follows similar moves by other German carmakers, such as Volkswagen, which has also announced significant job cuts.
The company's shares have fallen by more than 30% in the past six months, reflecting the challenges faced by the automotive industry. BMW's new CEO, who took over in May, is seeking to reduce costs after the company lowered its profit forecast for 2026.
The voluntary redundancy program will target employees in administrative and development roles, with production jobs being excluded. The program is expected to cost BMW hundreds of millions of euros, depending on how many employees accept the severance packages.
BMW's Research and Innovation Centre in Munich, which employs around 25,000 engineers, developers, designers, and business specialists, is expected to be particularly affected by the job cuts.
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