BMW will cut about 8,000 jobs by the end of 2027 under a voluntary redundancy program negotiated with its works council. The company confirmed the move to Reuters on July 29, making it the third of Germany’s major automakers this year to announce large-scale workforce reductions. According to Reuters, the program targets administrative and development roles, while BMW’s production workforce is excluded entirely.
A pattern at German automakers
BMW’s announcement follows the same pattern set by Volkswagen and Mercedes-Benz, both of which have already reached agreements with unions to cut tens of thousands of positions, Reuters reported. Volkswagen is weighing layoffs of up to 100,000 workers and the closure of four German plants, as HR Executive reported in June. Porsche, part of the Volkswagen Group, expanded its restructuring plans this week to cut about 20% of staff by 2035, Reuters reported.
Mercedes-Benz has been running its own voluntary redundancy program since 2025 as part of a broader “Next Level Performance” cost-cutting plan, targeting about €5 billion in savings by 2027, according to reporting. The company aimed to encourage up to 30,000 employees to leave voluntarily, with severance offers reaching €500,000 for long-serving managers. Bloomberg reported that Mercedes was entering additional negotiations with unions on further cost cuts on top of that program.
What happens next at BMW?
BMW presented a voluntary redundancy plan in Munich after six weeks of talks with its works council, Euronews reported, citing German media. The program is expected to save about €1 billion a year from 2028, with severance pay based on salary and tenure. Reuters said Germany’s automotive industry is facing a structural downturn driven by the EV transition, U.S. tariffs and intense competition from Chinese rivals, highlighting that BMW’s restructuring is part of a sector-wide pattern rather than a company-specific problem.
BMW’s offers go out starting in October, according to Euronews. Whether the company hits its 8,000 target through voluntary uptake alone, or has to revisit the structure, will be a signal for how much appetite German white-collar auto workers have for exit packages at this scale.
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