BMW Brilliance has reportedly begun cutting approximately 1,800 jobs, representing around 10% of its workforce, as the German automaker’s main Chinese joint venture faces pressure from declining vehicle sales. According to a report by AI4Robo, citing multiple employees, the layoffs started on November 2 and include a uniform severance package based on an n+5 formula.
Most of the affected employees work in production, although the reductions reportedly extend across several job categories. BMW Brilliance has not publicly confirmed the layoffs, their reported scale or the severance arrangements.
Layoffs Affect Production and Office Staff
The n+5 severance package reportedly combines the employee’s monthly pretax salary with an additional five months of basic pay. The additional payment excludes performance-related compensation and other allowances, according to employees cited by AI4Robo.
The report said the majority of affected workers hold P-category positions, which cover production roles. Employees in G-category positions, including office and management staff, have also been included in the reductions.
Those reportedly affected include employees with between three and five years of service, as well as workers with more than a decade at the company who had progressed into supervisory positions.
Employees also told the outlet that some departments had stopped renewing expiring employment contracts. Outsourced workers have reportedly faced reductions as well.
BMW Brilliance, headquartered in Shenyang, Liaoning province, is responsible for BMW vehicle production and sales in China. The joint venture had more than 19,000 employees before the reported cuts, based on a union roster cited by AI4Robo.
BMW Faces Declining Sales in China
The reported workforce reductions come amid weaker demand for BMW and Mini vehicles in China. The two brands delivered approximately 376,000 vehicles in the country during the first three quarters of 2026, down 21.8% from the same period a year earlier, according to figures disclosed by BMW and cited in the report.
BMW Group’s global deliveries also declined, falling 4.9% to approximately 1.708 million vehicles over the same period. Growth in other major markets was insufficient to offset the decline in China, with deliveries increasing 4.5% in Europe and 3.4% in the United States.
China remains an important market and manufacturing base for BMW, but the sales decline has added pressure to its local operations.
BMW Expands Battery Production for Neue Klasse
Alongside the reported workforce reductions, BMW is continuing to adapt its Chinese manufacturing operations for its next generation of electric vehicles.
On October 15, the company announced that mass production of its sixth-generation (Gen 6) high-voltage batteries had started in Shenyang. The project involves an investment of 10 billion yuan (approximately $1.49 billion), with the batteries initially intended for the Neue Klasse iX3 and i3 models.
BMW opened preorders for the China-specific, long-wheelbase Neue Klasse iX3 on August 21. The company said deliveries were scheduled to begin in November.
The local battery production programme forms part of BMW’s broader effort to prepare its Chinese operations for the Neue Klasse electric vehicle lineup, as the automaker faces increased competition and weaker sales in the market.