BMW gears up for 5% workforce reduction
Car manufacturer BMW is reported to be in talks with staff representatives as it prepares to cut up to 5% of its workforce.
The German company issued a profit warning last week saying that “structural and efficiency measures are being intensified” to respond to market forces, including the impact of conflict in the Middle East and weakening demand in China.
According to Reuters, around 7,700 positions are expected to be removed through natural attrition, including retirement, voluntary resignation and other forms of employee turnover.
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“We have strong product momentum: With the Neue Klasse, we will put the strongest BMW portfolio in history on the roads over the next two years,” said Milan Nedeljković, chairman of the board of management of BMW AG.
“At the same time, we will adapt our current structures and processes to the drastic downturn in market conditions. It is our entrepreneurial responsibility, therefore, to significantly intensify and accelerate our ongoing measures. It’s all about speed and efficiency.”
The 5% workforce reduction is expected to happen by the end of this year. The company said efficiency measures would have a “one-time negative impact on earnings in the second half of 2026”.
A works council spokesperson told Reuters: “We are initially working on viable solutions, through dialogue and with a sense of responsibility toward our employees.”
Fellow carmaker Volkswagen recently announced plans to cut 35,000 jobs in Germany by 2030, and around 20,000 of these roles have already been agreed through voluntary redundancy.
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