BMW might pay you ₹7cr to leave the company
What's the story
BMW has launched a voluntary exit program, offering its employees severance packages of up to €650,000 (roughly ₹7 crore). The move is part of the company's plan to cut around 8,000 positions by the end of 2027. The offer was made through an internal portal that went live in mid-October and was quickly overwhelmed with traffic from employees checking their severance offers.
Program specifics
'Turbo Bonus' for those opting for earlier departure
The voluntary exit program, which has been made available to some 50,000 employees, offers an individualized severance number for each worker.
However, the high-end figure of €650,000 isn't a standard offer but applies mostly to long-tenured and higher-paid employees.
The company has given two departure dates - March 31 or October 31 next year - with an additional "Turbo Bonus" for those opting for the earlier date.
Payment choices
Severance payment under program isn't uniform
The severance payment under BMW's program isn't uniform.
Employees can opt for a lump sum, installments, retirement savings contributions, direct insurance payments, or a combination of these options.
The payout is determined by factors such as the employee's salary, age and years at the company.
Employees turning 55 by October 31 next year may also qualify for benefits usually reserved for retirees.
Program expiration
Program expires on October 31, 2027
The voluntary exit program expires on October 31, 2027.
Some departing employees may also retain certain BMW perks such as discounts on new and used vehicles after leaving the company.
The buyouts come as part of a larger restructuring effort at BMW, which includes management-level cuts across the company.
Other automakers like Porsche and Jaguar Land Rover have also floated plans and run their own voluntary departure schemes.