BMW to Cut Several Thousand Jobs in Germany by 2027

German automaker BMW will cut several thousand jobs in the country by the end of 2027 through a voluntary redundancy program, a company spokesperson confirmed Wednesday. The move, agreed upon with employee representatives, is part of an effort to intensify cost-cutting measures amid a challenging market environment.

Details of the Restructuring

The job reduction plan specifically targets employees in the company's administration and development divisions, with production operations explicitly excluded from the cuts. While the company did not provide an exact figure, a person familiar with the matter told Reuters the total workforce could shrink by around 8,000 positions.

This workforce reduction will be managed through a severance program developed in cooperation with the company's works council. The timeline for the cuts extends through the end of 2027.

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Rationale and Market Context

This decision follows BMW's move in June to lower its profit outlook for the current year. The company cited weaker-than-expected business performance in China, a critical market where vehicle sales have recently declined sharply.

In response to the lowered forecast, Chief Executive Milan Nedeljkovic had stated that the automaker would accelerate and intensify its ongoing cost-saving efforts. The Munich-based group, which currently employs about 150,000 people worldwide, had already signaled a potential workforce reduction in its 2026 annual report, noting an expected "slight" decline in employment levels, which BMW defines as up to 5%.