BMW to Cut 8,000 Jobs Globally by End 2027 Amid Chinese Competition

BMW announced plans to reduce its workforce by approximately 8,000 employees by the end of 2027, making it the latest German automaker to announce significant job cuts amid intense market pressures. The company has agreed with its works council to launch a voluntary redundancy programme offering severance packages, primarily targeting administrative and development roles in Germany. The cuts represent roughly 5% of BMW's total global workforce of approximately 154,000 to 160,000 employees.

The restructuring programme will begin in October 2026 and continue through 2027. About 40,000 of BMW's roughly 85,000 German permanent employees will receive voluntary redundancy offers, though production line workers will be excluded from the cuts. The company expects one-time costs of approximately 1 billion euros (about 1.5 billion Singapore dollars) related to severance payments. BMW's supervisory board member and IG Metall union official Horst Ott stated that the company is "responding to the collapsing market in China while simultaneously working to strengthen the competitiveness of its German sites."

The job cuts are driven by multiple pressures facing the automotive industry. BMW's profit margins have contracted sharply, with the company downgrading forecasts to 1–3% for 2026, down from initial projections of 6% and 10% in 2023. Sales in China—a historically lucrative market—have declined significantly, with deliveries falling 30% year-on-year in the first half of 2026. The company also faces headwinds from US tariffs, intense price competition from Chinese manufacturers in the electric vehicle sector, and the need to fund transitions to electric powertrains while managing the conclusion of research and development for its Neue Klasse platform.

BMW's announcement reflects a broader crisis in the German automotive sector. Volkswagen announced up to 100,000 job cuts affecting its 650,000-strong workforce, including factory closures. Porsche, part-owned by Volkswagen, agreed to cut 9,000 jobs—a fifth of its workforce—by 2035. Mercedes-Benz has also implemented its own voluntary redundancy programme. CEO Milan Nedeljkovic told staff that the situation is "critical," attributing challenges partly to European regulations mandating electric vehicle sales amid uncertain demand and growing protectionist trade barriers globally.

BMW previously pursued a strategy that maintained petrol and diesel options alongside electric vehicles, which initially positioned it better than some peers. However, the sharp deterioration of Chinese market conditions—where BMW's sales peaked at nearly 850,000 units in 2021 but fell to 626,000 in 2025—prompted the shock profit warning issued in June 2026. The company expects the workforce reductions to improve profitability from 2028 onwards, contingent on market stabilization.