by BMW spent billions preparing the long-awaited Neue Klasse vehicles, but now it is forced to drastically change its personnel policy as well. The company aims to cut approximately 8,000 positions globally, with most layoffs occurring in Germany — part of a plan to reduce costs and restore profitability.
Unlike some restructuring programs, BMW is not touching production lines. Instead, voluntary layoffs will be offered to employees in the administrative department, research and development, and planning areas. Factory personnel are excluded from this scheme.
Cost of Labor: Germany vs. Hungary
Bloomberg reports that management positions will also be optimized. The voluntary exit program in Germany will start in October and last until the end of 2027. The company itself confirmed that it reached an agreement with the works council on restructuring, but does not disclose details on the planned number of layoffs.
The cuts are significant even for a large company like BMW. At the end of 2025, it employed about 150,000 people worldwide, including 87,436 in Germany. Compared to the previous year, the German part of the workforce decreased by 2.3%.
Behind the tightening of austerity measures is a series of increasingly troubling problems. BMW’s sales in China have dropped sharply — local manufacturers like BYD are increasing pressure, especially in the electric vehicle segment. Chinese brands are not limited to the domestic market: their growing presence in Europe forces BMW to compete with them on its home turf.
US Tariffs Don’t Help
The situation is worsened by US customs tariffs, expensive European production, and geopolitical uncertainty. In June, BMW lowered its profit forecast, and the new CEO Milan Nedeljković immediately promised to accelerate already initiated cost-cutting measures.
According to Reuters, Nedeljković told employees that the rules of the game in the industry have changed significantly, and with them the fundamental foundations of BMW’s business. He warned staff about difficult times while emphasizing the need for restructuring to improve profitability.
BMW is not the only company in this situation. Volkswagen and Mercedes have already approved plans that involve tens of thousands of layoffs. And Porsche recently expanded its own restructuring program, which will leave an additional 6,000 employees without jobs — in addition to the 3,500 already identified earlier.
These steps indicate a deep restructuring of the global automotive industry. On one hand, rising costs for energy, raw materials, and logistics; on the other, fierce competition from Chinese manufacturers who are actively adopting the latest technologies and offering lower prices. Tariffs imposed by the US only add tension. For European corporations, this means that optimizing personnel and reviewing production chains are becoming not just desirable, but necessary for survival. Despite the cuts, it is precisely in such conditions that the foundation for future resilience is laid — through focusing on profitable segments, new markets, and internal efficiency.
