by BMW spent billions preparing the long-awaited Neue Klasse vehicles, but now it is forced to radically 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 departures will be offered to employees in administration, research and development, and planning. Factory workers are excluded from this scheme.
Labor costs: Germany vs. Hungary
Bloomberg reports that management positions will also be optimized. The voluntary exit program in Germany will start in October and run until the end of 2027. The company itself confirmed that it has reached an agreement with the works council on restructuring, but details on the planned number of layoffs are not disclosed.
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 the cost-cutting regime is a series of increasingly unpleasant problems. BMW’s sales in China have sharply declined — local manufacturers such as 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 tariffs, expensive European production, and geopolitical uncertainty. In June, BMW lowered its profit forecast, and new CEO Milan Nedeljković immediately promised to accelerate already launched cost-cutting measures.
According to Reuters, Nedeljković told employees that the rules of the game in the industry have fundamentally changed, along with the fundamental foundations of BMW’s business. He warned staff of difficult times while emphasizing the need for restructuring to increase profitability.
BMW is not the only company in this situation. Volkswagen and Mercedes have already approved plans that involve tens of thousands of cuts. And Porsche recently expanded its own restructuring program, which will additionally leave 6,000 workers without jobs — on top of 3,500 that were 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 implementing cutting-edge technologies and offering lower prices. The tariffs imposed by the US only add to the tension. For European corporations, this means that workforce optimization and supply chain revision are becoming not just desirable but necessary for survival. Despite the cuts, it is precisely under these conditions that the foundation for future resilience is being laid — through a focus on profitable segments, new markets, and internal efficiency.
