BMW reached an agreement with its works council in July 2026 to reduce its global workforce by about 8,000 positions by the end of 2027. The plan aims to save approximately €1 billion annually from 2028. The negotiated measures rely on voluntary departures, including severance and early retirement, rather than compulsory redundancies. Handelsblatt reported the agreement, which BMW confirmed.
The voluntary-departure program opened in Germany in October and focused on employees outside vehicle production. About 40,000 of BMW’s roughly 85,000 employees in Germany were eligible; factory roles directly tied to vehicle manufacturing were excluded from the initial program. Germany is expected to bear the largest share of the global reduction, with more than half of the positions potentially located there. Handelsblatt-based reporting put individual severance payments at as much as, or above, €650,000, depending on employees’ age and salary, as well as seniority. The company was reported to have budgeted about €1 billion for severance costs.
BMW also plans to simplify its organizational structure. The company said it would reduce the number of divisions and associated senior management roles by 20% by the middle of next year, with comparable cuts at lower organizational levels. The changes form part of a broader push to lower fixed costs amid softer demand and tougher competition, as technology reshapes the automotive industry.
Market pressures include a difficult environment in China, where BMW’s sales reportedly fell by almost 25% in the latest quarter cited in reporting. The restructuring comes as the automaker faces intensifying competition and weaker demand in that market. Growth in Europe and the United States has not fully offset the decline.
The voluntary program’s early closure reflected strong employee interest, but BMW has not yet completed its global reduction target. One estimate put registrations of interest at about 5,000; that figure was not a final count of accepted departures. Workforce and organizational changes are scheduled to continue through the end of 2027, with recurring savings expected from 2028.
A BMW spokesperson said that after the departure program concluded quickly, the focus was shifting to “the company’s organizational, structural and operational realignment.” The company’s approach reflects the negotiated role of its works council in Germany and aims to manage the workforce reduction through voluntary measures.
Source: elespanol motor
