BMW plans several thousand voluntary job cuts in Germany by end-2027
BMW’s agreement with its works council covers administrative and development divisions but excludes production, while existing cost reductions are set to intensify.
- BMW plans to cut several thousand jobs in Germany by the end of 2027 through a voluntary redundancy program.
- The job reductions will target administrative and development divisions, while specifically excluding production operations.
- The company is implementing these cuts to increase profitability and adapt to significant changes in the automotive industry, including weaker demand in China.
BMW said on Wednesday (July 29) that it would remove several thousand positions in Germany through a voluntary redundancy programme by the end of 2027.
According to a person familiar with the matter, the group’s total workforce is expected to decline by around 8,000.
The Munich-based company currently employs about 150,000 people worldwide.
The arrangement, agreed with BMW’s works council, applies to administrative and development divisions and excludes production operations, a company spokesperson said.
At a workers’ assembly in Munich on Wednesday, chief executive Milan Nedeljković told employees that the conditions governing the industry had changed substantially, altering the foundations of BMW’s business model, according to a participant.
The source said Nedeljković had warned of a difficult period ahead but described the measures as important to making BMW more profitable.
He had also said the company would accelerate and intensify cost-cutting efforts already under way.
BMW had until recently been regarded as relatively steady among its peers.
In June, however, it lowered its profit forecast for the current year, citing weaker-than-expected business in China, where vehicle sales had fallen sharply in recent months.
The move makes BMW the latest German carmaker to reduce staff in response to weak demand and pressure on profits.
Volkswagen and Mercedes-Benz have already agreed workforce reductions affecting tens of thousands of employees, while Germany’s automotive sector faces the high cost of moving towards electric vehicles, intense competition from China and US tariffs.
On Monday, Porsche, the sports carmaker within the Volkswagen Group, expanded its restructuring and plans to reduce its workforce by about 20% by 2035.
Thousands of Audi workers also protested on Wednesday at the company’s Neckarsulm plant.
Audi is another brand within the Volkswagen Group, and the site is one of four in Germany threatened with closure under Volkswagen’s restructuring plans.
BMW is due to publish its second-quarter financial results on Thursday.
Source: Reuters
