Cost-cutting measures are increasing in the German auto industry. According to German media reports, weeks of talks between BMW management and employee representatives have resulted in an agreement on a voluntary separation program that will affect thousands of workers.
Under the agreement, the program will start in October 2026 and run until the end of 2027. The aim is to reduce the total workforce by around 8,000 during this period.
BMW, which has 150,000 employees worldwide and around 84,000 in Germany, will offer voluntary separation to approximately 40,000 staff not directly involved in production. The program is expected to mainly cover employees in management, research and development (R&D), planning and administrative roles.
The amount of compensation to be paid to employees who accept the separation will be determined based on their salary and seniority.
BMW is taking this step in response to global economic challenges and sectoral pressures. In June, the company had downwardly revised its 2026 sales and profit forecasts, mainly due to shrinking demand in the Chinese market. Rising costs, US tariffs, and global competitive pressure are also among the factors pushing the company to implement cost-saving measures.