BMW offers voluntary redundancy to German staff, 8,000 cuts

BMW will offer voluntary redundancy to nearly half of its permanent employees in Germany as part of a plan to reduce its global workforce by approximately 8,000 positions by the end of 2027. The company confirmed the agreement with its works council on Wednesday, July 29, 2026.

The severance program will target administrative and development roles, with production line workers excluded from the cuts. A company source said offers will be extended to about 40,000 of BMW's roughly 85,000 permanent German staff beginning in October. The program is expected to run through 2027, with the bulk of departures anticipated next year.

The decision follows about six weeks of negotiations between management and employee representatives. BMW CEO Milan Nedeljković and works council chairman Martin Kimmich are scheduled to present the finalized agreement. The move is a direct response to significant financial pressures, particularly a sharp downturn in the critical Chinese market. Last month, BMW issued a profit warning, slashing its margin forecast for its automotive business to as low as one percent, citing fiercer-than-expected competition and a sluggish economy in China.