German carmaker BMW is preparing to cut around 8,000 jobs worldwide under a major restructuring programme as the automotive industry grapples with rising costs, slowing demand and intensifying competition from Chinese rivals.
The company confirmed that a voluntary redundancy programme will run until the end of 2027, following negotiations with employee representatives.
A BMW spokesperson told Reuters the company and its works council had agreed a severance programme targeting administrative and development roles, while production jobs will be protected.
Although BMW has not officially confirmed the number of positions affected, a source familiar with the discussions said the workforce reduction is expected to total around 8,000 employees.
German newspaper Süddeutsche Zeitung reported that one in every 11 jobs in Germany could disappear as part of the cost-cutting drive, with many of the reductions expected to come from BMW’s headquarters in Munich.
The report claimed around 40,000 employees across Germany will be offered voluntary severance packages when the programme begins in October.
BMW chief executive Milan Nedeljković and works council chairman Martin Kimmich are expected to formally present the agreement later on Wednesday.
The restructuring comes as Europe’s traditional carmakers face mounting pressure from the costly transition to electric vehicles, weaker consumer demand and growing competition from Chinese manufacturers offering lower-priced EVs.
BMW sold 565,780 vehicles worldwide during the first quarter of 2026, down 3.5% from a year earlier. While the BMW brand remained the group’s largest seller, Mini was the only marque within the company to record year-on-year sales growth.
The company has continued to perform relatively strongly in the UK, registering 62,877 new vehicles so far this year and capturing more than 5.5% of the market. However, UK registrations are still 4.29% lower than during the same period in 2025.
Mr Nedeljković, who became BMW’s chief executive in May after more than three decades with the company, has repeatedly warned that the automotive sector faces significant challenges despite insisting the manufacturer remains “on the right track”.
Investors will be watching closely when BMW publishes its half-year results on Thursday, with the update expected to provide further details on the company’s restructuring plans and financial outlook as it navigates one of the most challenging periods for the global car industry.
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