BMW to Cut 8,000 Jobs Through Voluntary Redundancy Program by 2027
The German automaker targets administrative and R&D roles, excluding production workers, as it faces geopolitical uncertainties and declining sales in China.
BMW plans to cut approximately 8,000 jobs worldwide by the end of 2027 through a voluntary redundancy program, the company announced. The program, which runs from October 2026 to the end of 2027, targets administrative, research and development, planning, and management roles, excluding production workers. BMW's global workforce stood at 154,540 at the end of 2025.
8,000 jobs
Planned job cuts globally by 2027 through voluntary redundancy.
About 40,000 of BMW's German employees not directly involved in production will be offered the voluntary redundancy package. The company employs approximately 84,000-85,000 people in Germany, according to some estimates, though a previous figure cited over 87,000. The plan was presented to employees in Munich by CEO Milan Nedeljkovic and works council chairman Martin Kimmich.
BMW revised its 2026 profit forecast downward in June 2026 due to worsening conditions in China, where vehicle deliveries fell 30% year-on-year in the three months to June. In 2025, BMW's China deliveries had already dropped 12.5% year-on-year, while global deliveries rose 0.5% to 2,463,681. Sales in Europe rose 7.3% and in the Americas rose 5.6% in 2025.
Neither the protectionism nor far-reaching changes in the market are going to disappear.
— CEO Milan Nedeljkovic
Nedeljkovic told staff that the changes reflect "a substantial change to the rules of the game" and are a consequence of "political mandates that are out of step with the market." A BMW spokesperson added that the company is proactively shaping changes including technological transformation, geopolitical uncertainties, changing market conditions, and developments in China.
BMW expects the measures to generate annual savings of around €1 billion from 2028. The voluntary redundancy program itself is expected to cost the company hundreds of millions of euros.
Updates
BMW's financial outlook has weakened further, with the company's 2026 profit margin forecast for its car business dropping to as low as 1%, compared to the 10% margin recorded in 2023. Additionally, BMW's German workforce fell to 87,436 by the end of 2025, representing a 2.3% decrease from the previous year. CEO Milan Nedeljkovic has formally warned staff that difficult times lie ahead, emphasizing that the planned restructuring is essential to restore profitability.
BMW CEO Milan Nedeljkovic has explicitly warned staff of difficult times ahead, emphasizing that the restructuring is essential for boosting profitability. Furthermore, the company's financial outlook has darkened, with its 2026 profit margin for the cars business now forecasted to fall as low as 1%, following a 10% margin recorded in 2023. Additionally, BMW's German workforce stood at 87,436 at the end of 2025, reflecting a 2.3% decline compared to the previous year.
BMW CEO Milan Nedeljkovic has warned employees that difficult times necessitate restructuring to boost profitability, while forecasts suggest the company's 2026 car business profit margin could fall as low as 1%. Additionally, company data confirms the German workforce stood at 87,436 by the end of 2025, representing a 2.3% decrease from the prior year.
BMW CEO Milan Nedeljkovic has formally warned staff that restructuring is essential to address profitability, as the company’s profit margin forecast for its car business in 2026 has dropped to as low as 1% from 10% in 2023. Additionally, BMW's German workforce was recorded at 87,436 by the end of 2025, marking a 2.3% decline compared to the previous year.
BMW CEO Milan Nedeljkovic has warned staff of impending restructuring, as the company's automotive profit margin forecast for 2026 has dropped to as low as 1%, down from the 10% margin reported in 2023. Additionally, data indicates that BMW's German workforce stood at 87,436 at the end of 2025, marking a 2.3% decrease from the previous year.
BMW's financial outlook has tightened significantly, with the company's 2026 profit margin forecast for its car business dropping as low as 1%, compared to a 10% margin in 2023. CEO Milan Nedeljkovic has formally warned staff that difficult times lie ahead, stating that restructuring is essential for future profitability. Additionally, new data reveals that the company's German workforce stood at 87,436 at the end of 2025, representing a 2.3% decline from the previous year.
BMW's second-quarter 2026 net profit fell by 35% to €1.2 billion, with revenue dropping to €31 billion from €34 billion, while the company's car business profit margin is forecast to be as low as 1%. Restructuring efforts, which include simplifying management levels and integrating AI into administrative processes, are expected to incur a one-off expense of approximately €1 billion. Additionally, company management reportedly intends to inform staff about these reductions during a meeting on July 30, with labor representatives emphasizing that collective bargaining provisions remain non-negotiable.
BMW expects the restructuring program to incur one-off expenses of approximately €1 billion. As the company faces a 35% decline in second-quarter 2026 net profit to €1.2 billion and a revenue drop to €31 billion, it plans to simplify management, merge units, and integrate AI to enhance efficiency. While reports suggest these measures may be formally announced at a staff meeting on July 30, union representative Horst Ott stated that collective bargaining agreements remain non-negotiable and the company will prioritize natural staff turnover.
BMW's second-quarter 2026 net profit fell 35% to €1.2 billion, with revenue declining to €31 billion, while the company forecasts its car business profit margin could drop to as low as 1%. To improve efficiency, the automaker will simplify management levels, merge units, and utilize AI in administrative processes, incurring an estimated €1 billion in one-off restructuring expenses. While management argues these measures are essential for profitability, the program, which affects one in every 19 positions globally, is expected to be formally presented to staff at a company-wide meeting on July 30.
BMW's second-quarter 2026 net profit dropped 35% to €1.2 billion, while revenue declined to €31 billion from €34 billion. The company's finance management stated that the restructuring process could result in a one-off expense of approximately €1 billion. Additionally, BMW's 2026 profit margin forecast for its cars business is as low as 1%, and the company plans to simplify management levels and increase efficiency via AI applications. Although there are reports that the cuts will be announced to staff on July 30, this remains unverified.
BMW's restructuring could incur a one-off expense of approximately €1 billion, with the company's second-quarter 2026 net profit falling 35% to €1.2 billion and revenue dropping to €31 billion from €34 billion. Additionally, BMW's 2026 profit margin forecast for its car business is as low as 1%, while the company plans to simplify management levels, merge units, and utilize AI to increase administrative efficiency.
The restructuring process is expected to incur a one-off expense of approximately €1 billion, with finance management stating that these costs will likely be felt in the second half of 2026. Additionally, BMW's second-quarter 2026 net profit fell 35% to €1.2 billion, while revenue dropped to €31 billion from €34 billion. The company also plans to implement the reorganization by simplifying management levels, merging units, and using AI to increase administrative efficiency.
BMW's finance management stated that the restructuring could incur a one-off expense of approximately €1 billion, while the company's second-quarter 2026 net profit fell 35% to €1.2 billion with revenue dropping to €31 billion from €34 billion. Additionally, BMW's 2026 profit margin forecast for its cars business is as low as 1%, and the restructuring measures are expected to impact costs in the second half of 2026.
BMW's restructuring process is expected to cost the company approximately €1 billion in one-off expenses, with the financial impact potentially being felt in the second half of 2026. Additionally, the company's second-quarter 2026 net profit fell by 35% to €1.2 billion, while revenue decreased to €31 billion from €34 billion. The restructuring will involve simplifying management levels, merging certain units, and implementing AI applications to increase administrative efficiency.
