Luxury automaker plans workforce reduction by 2027 as slowing China sales, EV pressures and global trade headwinds weigh on business…..
German luxury carmaker BMW is preparing to reduce its workforce in Germany by around 8,000 employees by the end of 2027 through a voluntary redundancy programme, according to a company source familiar with the plan.
The initiative will target employees in office and administrative roles, with nearly 40,000 of BMW’s approximately 85,000 permanent workers in Germany expected to receive voluntary exit offers beginning in October.
Production line employees will not be affected by the programme, the source said, adding that the company intends to achieve the workforce reduction without compulsory layoffs.
“We’re planning on the basis of reducing the workforce by around 8,000 people by the end of 2027,” the source said.
BMW employs roughly 154,000 people worldwide, making Germany its largest employment base.
The restructuring plan follows several weeks of discussions between the company’s management and its works council before an agreement was reached on the voluntary redundancy programme.
Like many European automakers, BMW has been grappling with mounting pressure from multiple fronts, including shrinking profit margins on electric vehicles, higher costs linked to U.S. tariffs, and intensifying competition in the Chinese market.
Germany’s automotive industry has increasingly turned to cost-cutting measures as manufacturers adjust to slowing demand and a rapidly changing global market.
Volkswagen is reportedly considering significant workforce reductions across its brands, while Mercedes-Benz has also introduced voluntary redundancy measures as part of its broader efficiency drive.
Compared with some of its rivals, BMW has largely been viewed as better positioned after opting to continue offering petrol and diesel vehicles alongside its expanding electric vehicle lineup, rather than pursuing an all-electric strategy.
That approach has helped the automaker avoid some of the costly strategic shifts experienced elsewhere in the industry while maintaining growth in electric vehicle sales.
However, the company recently warned investors that its financial performance was likely to come under greater pressure than previously expected, citing weaker-than-anticipated business conditions in China.
BMW has struggled to regain momentum in the world’s largest automobile market, where fierce price competition and a sluggish economy have continued to weigh on vehicle demand.
The company’s vehicle deliveries in China had already fallen to their lowest level since 2017 last year, and sales declined by a further 30% year-on-year during the three months ending in June, underscoring the growing challenges facing the premium automaker in one of its most important markets.
