BMW is reportedly preparing to reduce its global workforce by around 8,000 positions as part of a broad restructuring programme aimed at lowering annual costs by approximately €1 billion from 2028.
The reported measures will primarily affect office-based roles in Germany, while production jobs at the automaker’s manufacturing plants are expected to remain unaffected.
Voluntary Programme Targets Administrative Roles
According to multiple media reports citing company sources, BMW plans to launch the programme in October and complete it by the end of 2027.
BMW Reportedly Developing All-Electric i4 Cabrio on Neue Klasse Platform
Rather than implementing compulsory layoffs, the company intends to rely on voluntary severance agreements, natural attrition through unfilled vacancies and partial retirement schemes.
Around 40,000 of BMW’s approximately 85,000 employees in Germany are expected to receive individual severance offers. The company has reportedly allocated around €1 billion to support the voluntary programme.
The affected positions are expected to be concentrated at BMW’s headquarters and its Research and Innovation Centre in Munich.
Profit Decline Drives Restructuring
The workforce restructuring follows weaker financial results during the first half of 2026, when BMW reported an 8% year-on-year decline in revenue to €62.27 billion.
Pre-tax profit fell 29.4% to €4.05 billion, while the company’s earnings-before-tax margin declined to 6.5%.
During the presentation of the results, Chief Executive Officer Milan Nedeljković said the automotive industry is facing increasing pressure from global competition, evolving regulations and geopolitical developments.
BMW to Begin Gen6 Battery Production at South Carolina Plant in December
“The automotive industry is faced with rapidly escalating challenges – intense global competition, increasing regional regulatory requirements and the implications of geopolitical conflicts will shape our business model in the years ahead. That’s why it’s important to be lean and agile.”
He added that the company is restructuring its organisation and internal processes to strengthen long-term competitiveness.
“We are working to reshape our organisation and processes, thereby positioning the company to stay competitive going forward.”
Management Changes Support Transformation
Alongside the workforce adjustments, BMW is reorganising parts of its management structure by consolidating business units and placing greater emphasis on value-generating operations.
The company is also preparing for a leadership transition in its human resources division. Dorothea von Boxberg, currently chief executive of Brussels Airlines, will become BMW’s Chief Human Resources Officer on 1 September, succeeding Ilka Horstmeier.
General Works Council Chairman Martin Kimmich said the agreement prioritises employee protection compared with restructuring programmes announced elsewhere in the automotive industry.
BMW Confirms Neue Klasse i3 and iX3 Production in Mexico From 2027
“While elsewhere there is public discussion about job cuts, plant closures, or austerity measures, we have concentrated on creating security for employees and implementing binding safeguards.”
BMW has not officially confirmed the reported figure of 8,000 job reductions, but said it has agreed with employee representatives on a broad personnel adjustment programme centred on voluntary participation as it responds to challenging market conditions, including weaker performance in China.
