German carmaker BMW is planning to cut thousands of jobs in Germany, becoming the latest major automaker in the country to launch a large cost-cutting program. The company announced the plan to employees at its headquarters in Munich on Wednesday.
According to German media reports, BMW Chief Executive Milan Nedeljković and Supervisory Board Chairman Martin Kimmich presented the plan to employees. The company and its works council agreed on a voluntary redundancy program focused on administrative and development roles. However, a BMW spokesperson told Reuters that jobs in production will not be affected.
This will be a voluntary program rather than forced layoffs, giving employees the choice to accept a buyout offer or stay with the company. Reports show that BMW’s global workforce could be reduced by around 8,000 employees.
According to German business newspaper Handelsblatt, the program is expected to begin in October 2026 and continue through the end of 2027. According to the report, BMW expects the program to generate annual savings of around €1 billion from 2028.
At the end of 2025, BMW had 154,540 employees worldwide and around 84,000 of them work in Germany. Münchner Merkur reported that the planned job cuts are expected to mainly affect administrative and development roles in Munich, Regensburg, Dingolfing, and Leipzig.
BMW’s Research and Innovation Centre (FIZ) in Munich is one of the company’s largest engineering and technology hubs, employing about 25,000 people across engineering, software development, design, and business operations. According to reports, the planned workforce reduction is expected to have a significant impact on employees at major facilities such as the FIZ.
The program is expected to cost BMW hundreds of millions of euros. However, the company said it is difficult to estimate the final cost because it will depend on how many employees accept the offer. The amount of compensation offered will vary based on each employee’s salary and years of service.
BMW management and employee representatives held intensive meetings over the program during the previous six weeks. Wednesday’s staff meeting marked the deadline for reaching a final agreement.
BMW has been facing increasing pressure from slowing demand in China and major changes in the global automotive industry, including growing competition from Chinese carmakers. In June, the company cut its 2026 profit forecast, due to low market conditions in China and the impact of the Middle East conflict.
Munich-based BMW is the latest major German car manufacturer to announce a huge job cutting program, following a series of cuts at Volkswagen, Mercedes, Audi, and Porsche.
Porsche announced this week that it will cut another 5,000 jobs by 2035, adding to its earlier workforce reductions and bringing the total planned job cuts to about 9,400. Meanwhile, Volkswagen Chief Executive Oliver Blume wants to increase the group’s planned job cuts to 100,000 positions.
BMW’s recent profit reports reflects these challenges. Earlier this year, the company’s net profit dropped by more than 20%, while its sales in China also fell by more than 10% compared with the previous year.
Germany’s auto industry, one of the country’s most important economic sectors, is facing growing pressure as demand in the major markets weakens and competition from Chinese carmakers continues to increase. At the same time, U.S. tariffs and the conflict in the Middle East have added to the industry’s challenges. Labor unions across Germany are opposing further job cuts, warning that too many job losses could seriously affect communities that depend on the country’s automotive industry for jobs and economic stability.
