New Delhi–BMW plans to eliminate about 8,000 jobs in Germany by the end of 2027 as the luxury automaker responds to weak demand, rising costs and challenges associated with the transition to electric vehicles.
The company said Wednesday that the reductions would be carried out through a voluntary severance program agreed upon with its works council. The cuts are expected to primarily affect administrative and development positions, while manufacturing operations will not be impacted.
BMW’s German workforce is expected to shrink by about 8,000 employees, according to media reports. The Munich-based company employs approximately 150,000 people worldwide.
The planned reductions come as Germany’s automotive industry confronts the high cost of shifting to electric vehicles, growing competition from Chinese automakers and the effects of U.S. tariffs.
BMW joins Volkswagen and Mercedes-Benz, which have announced plans to eliminate tens of thousands of positions as part of broader restructuring efforts.
Porsche, a Volkswagen Group subsidiary, recently expanded its restructuring program and plans to reduce its workforce by about 20 percent by 2035. Thousands of employees also protested Wednesday at Audi’s Neckarsulm plant over Volkswagen’s restructuring plans, which have raised concerns about the possible closure of one of the group’s four German production sites.
BMW had previously been viewed as more resilient than some of its German rivals, but the company lowered its profit outlook in June because of weaker-than-expected business in China, where vehicle sales have declined sharply.
Following the revised forecast, Chief Executive Milan Nedeljkovic said BMW would accelerate its cost-cutting initiatives. In remarks to employees Wednesday, he reportedly said the automotive industry was undergoing fundamental changes that were reshaping the company’s business model.
Nedeljkovic acknowledged that the restructuring would be difficult but said the measures were necessary to strengthen BMW’s long-term profitability.
BMW is scheduled to release its second-quarter financial results Thursday. (Source: IANS)
