GermanyBMW is starting its first large-scale staff reduction program in years. By the end of 2027, the company plans to cut around 8,000 positions - about 20% of administrative and engineering staff in Germany and roughly 5% of its entire global workforce.
Factory workers are not affected. BMW has agreed with its works council on a voluntary redundancy program that starts in October 2026. Alongside the cuts, the company will merge divisions, reduce management layers, and review internal processes.
The reductions follow falling sales in China, shrinking profit, rising competition from Chinese manufacturers, and higher costs. In the second quarter, BMW’s China sales dropped almost 30%, while the automotive division’s operating margin fell from 5.4% to 2.3%.
