BMW to cut 8,000 jobs by end of 2027
What's the story
BMW has announced plans to offer voluntary redundancy to nearly half of its German workforce. The move is part of a larger strategy to cut around 8,000 jobs by the end of 2027. The company employs some 154,000 people worldwide, and the offer will be open only for desk-based employees in Germany. Production line workers are not affected by these cuts.
Implementation timeline
Negotiations with works council
The job offers will be rolled out from October, impacting some 40,000 of BMW's nearly 85,000 permanent employees in Germany.
The decision comes after about six weeks of negotiations between the board and BMW's works council.
Despite this major restructuring plan, the company has managed to maintain its electric vehicle sales growth while avoiding expensive strategy changes.
Financial hurdles
BMW's profit warning
Last month, BMW issued a surprising profit warning, indicating that its business in China was worse than expected. The company faces fierce competition and a sluggish economy in the region.
Last year, vehicle deliveries in China were already at their lowest since 2017 and fell by 30% year-on-year in the second quarter.