BMW rolls out voluntary buyouts to slash 8,000 jobs globally amid China sales slump

BMW has struck a deal with German worker representatives to offer voluntary severance packages as part of a global workforce reduction of about 8,000 employees—roughly 5% of its total workforce. The cuts, which will be concentrated in Germany, target roles in research, development, planning, and corporate functions, while factory floor workers are excluded. Departures are slated to begin in October 2026 and continue through 2027, according to sources familiar with the plan. The move follows a major profit warning in June and reflects mounting pressure from collapsing demand in China, U.S. tariffs, and high production costs in Europe. BMW’s largest single market, China, has seen fierce competition from local EV makers like BYD Co., compounded by a property crisis that has dampened consumer spending. The company’s shares rose 1.9% in Frankfurt trading after the announcement, though the stock remains down over a third year-to-date. BMW CEO Milan Nedeljkovic, who took over in May, is accelerating cost-cutting measures to restore profitability by 2028. The restructuring also includes plans to streamline management ranks. The voluntary nature of the program is driven by German labor laws, which typically prevent direct layoffs, requiring companies to offer generous buyout packages instead. BMW employed 87,436 people in Germany at the end of 2025—more than half of its global workforce—and had already reduced its German headcount by 2.3% year-over-year. The cuts come as Germany’s auto industry grapples with broader challenges, including rising competition from Chinese automakers expanding into Europe. “The Chinese are also increasing their market share here,” said Stefan Bratzel, director of the Center of Automotive Management in Bergisch Gladbach. “The clear directive for BMW and its peers is to become leaner, more efficient and faster.” The announcement follows Volkswagen AG’s push to cut tens of thousands of jobs and close four German factories, as well as Porsche AG’s recent deal to eliminate 5,000 positions by 2035. BMW’s restructuring plan was negotiated with relatively little public friction compared to Volkswagen’s contentious talks with labor leaders. Nedeljkovic, who previously led production, is betting on the company’s Neue Klasse platform—recently introduced globally—to help compete against Tesla and Chinese rivals. BMW is scheduled to release its second-quarter results on July 30, 2026.