BMW to cut around 8,000 jobs in Germany by 2027 amid weak demand and EV transition

BMW will cut around 8,000 jobs in Germany by 2027 through a voluntary redundancy programme as it responds to weak demand, mounting costs and the transition to electric vehicles. The company says production jobs will remain unaffected despite the restructuring

New Delhi: German luxury carmaker BMW on Wednesday announced plans to cut several thousand jobs in Germany by the end of 2027 through a voluntary redundancy programme, becoming the latest automaker to reduce its workforce amid weakening demand, mounting cost pressures and a challenging transition to electric vehicles.

The company said the severance programme, agreed with the works council, will primarily affect employees in its administration and development divisions, while production operations will remain unaffected.

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According to multiple reports, BMW’s workforce in Germany is expected to shrink by around 8,000 employees. The Munich-based automaker currently employs about 150,000 people worldwide.

The move comes as Germany’s automotive industry faces multiple headwinds, including the costly shift towards electric mobility, intense competition from Chinese manufacturers and the impact of tariffs imposed by the United States.

BMW joins rivals Volkswagen and Mercedes-Benz, both of which have already reached agreements to reduce tens of thousands of jobs as part of broader restructuring efforts.

Earlier this week, Porsche, a subsidiary of Volkswagen Group, expanded its restructuring programme with plans to reduce its workforce by around 20 per cent by 2035. Meanwhile, thousands of workers staged protests at Audi’s Neckarsulm plant on Wednesday, opposing Volkswagen’s restructuring plans that have put one of the group’s four German production sites at risk of closure.

BMW, which had until recently been viewed as relatively resilient compared with its domestic peers, lowered its profit outlook for the current financial year in June, citing weaker-than-expected business in China, where vehicle sales have declined sharply in recent months.

Following the revised guidance, Chief Executive Milan Nedeljkovic said the company would accelerate and intensify its ongoing cost-cutting initiatives. Addressing employees on Wednesday, Nedeljkovic reportedly said the automotive industry was undergoing fundamental changes that were reshaping the foundations of BMW’s business model. While acknowledging the difficult road ahead, he said the planned measures were necessary to improve the company’s profitability over the long term.

BMW is scheduled to announce its second-quarter financial results on Thursday.