BMW to Cut 8,000 Jobs by 2027 Amid Pressure From Chinese Competition

Premium carmaker BMW plans to offer voluntary redundancy to nearly half of its German workforce as part of a broader effort to reduce staff by around 8,000 positions by the end of 2027, according to a company source.

Voluntary Offers Target Desk-Based Roles

Starting in October, about 40,000 of BMW’s roughly 85,000 permanent German employees will receive voluntary redundancy offers, with production line workers excluded from the cuts. The plan, negotiated over roughly six weeks between company leadership and BMW’s works council, primarily targets office-based staff. BMW employs around 154,000 people globally.

Chinese Market Struggles Drive Restructuring

German automakers, including BMW, are facing pressure from thinner electric vehicle margins, U.S. tariffs and intensifying competition in China. BMW’s CEO described the situation as critical during a staff meeting, pointing to European regulations pushing electric vehicle sales despite uneven demand, along with rising global tariff barriers. The company recently issued a profit warning after Chinese deliveries fell 30% year-over-year in the second quarter, reaching their lowest levels since 2017.

Broader Industry Impact

Other major German manufacturers are undergoing similar changes, with Volkswagen considering cuts of up to 100,000 jobs and Mercedes Benz running its own voluntary redundancy program. Industry representatives note that labor agreements remain non negotiable, though natural staff turnover is also being used to reduce headcount. BMW expects the restructuring to lower costs meaningfully by 2028, with most departures occurring next year and expenses reaching into the hundreds of millions this year.