The program, agreed upon with the works council, will affect administrative departments and research and development centers, according to Reuters. Production sites are not included in the program. The company emphasizes that this involves voluntary employee departures with severance pay. BMW’s total workforce numbers approximately 160,000 people.
BMW attributes the restructuring to the need to adapt to profound changes in the automotive industry. Among the key factors, the company cites the accelerated transition to electric vehicles, geopolitical uncertainty, changing market conditions, and intensifying competition from Chinese manufacturers.
In recent years, Chinese automakers have significantly strengthened their positions both in the domestic market and abroad, increasing pressure on European manufacturers. At the same time, European automakers are having to allocate significant resources to developing new electric models and restructuring their businesses amid changing global trade conditions, including the introduction of new U.S. tariffs.
BMW has become the latest major European automaker to announce cost-cutting measures. Earlier, Volkswagen confirmed plans to cut its workforce by 100,000, close four plants, and significantly reduce its model lineup. Porsche has also expanded its restructuring program, increasing the total number of planned job cuts to 9,000 by 2035.
The streamlining at BMW comes shortly after a change in the company’s leadership. In May, Milan Nedelkovic, who previously headed the production division, took over as CEO. He will lead the company through the most sweeping transformation of the global automotive industry in recent decades, a period in which manufacturers must simultaneously invest in new technologies, cut costs, and compete with rapidly growing Chinese brands.
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