BMW to Cut 8,000 Jobs in Germany as China Sales Plummet 30% and Cost Pressure Rises

German luxury automaker BMW announced on Wednesday (29th) that it will cut thousands of employees in Germany by the end of 2027 through a voluntary departure program. According to sources, the reduction is expected to affect approximately 8,000 employees, making BMW the latest German automaker to downsize amid profit pressures and weak demand.

BMW has reached an agreement with its works council on the departure program, primarily targeting administrative and R&D staff, while production roles will remain unaffected. BMW currently employs around 80,000 people in Germany and approximately 150,000 globally. This reduction could represent about 10% of its German workforce.

CEO Milan Nedeljkovic stated during an employee meeting in Munich on Wednesday, "The rules of the automotive industry have fundamentally changed, and so has the foundation of BMW's business model. We must decisively streamline our organization and improve our cost structure." He emphasized, "Although the coming period will be challenging, these measures are crucial for enhancing BMW's profitability."

BMW had previously been seen as one of the more stable German automakers, but in June, it revised its sales and profit outlook downward, citing intense competition in China and other Asia-Pacific markets, along with weaker-than-expected car demand in China. BMW's vehicle sales in China plunged 30% in the second quarter, forcing the company to accelerate and expand its existing cost-cutting initiatives.

In addition to competition in China, BMW faces pressure from U.S. tariffs, Middle East conflicts, and rising energy prices. The conflicts not only increase operating costs but also dampen global consumer willingness to purchase new vehicles. At the same time, German automakers are facing high costs in transitioning to electric vehicles, while the profit margins on new EV models remain limited.

BMW is not the only German automaker reducing its workforce. Mercedes-Benz has already implemented job cuts through voluntary departures and plans to increase automation, reduce energy and logistics costs, and shift some production to lower-cost countries like Hungary. Volkswagen plans to cut 50,000 jobs in Germany by the end of 2030 and recently warned of potentially eliminating another 50,000 positions.

Porsche, under the Volkswagen Group, expanded its restructuring plan this week, preparing to cut about 20% of its workforce by 2035. Another brand, Audi, faces the threat of closing four German factories, prompting thousands of employees to protest at the Neckarsulm plant on Wednesday. BMW is scheduled to release its second-quarter financial results on Thursday (30th), when the market will closely examine the impact of declining sales in China and rising cost pressures on profitability.