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BMW to cut up to 8,000 jobs in Germany under voluntary program
The company said the severance plan targets administration and development divisions, while production operations are excluded.
BMW has started a voluntary redundancy program in Germany that is expected to reduce jobs by as many as 8,000, under a plan agreed with employee representatives, the company said. A BMW spokesperson said the severance program is aimed at its administration and development divisions, while production operations are excluded.
The job cuts come as Europe’s auto industry faces intensifying pressure from Chinese rivals. The Guardian Business cited the rapid gains by Chinese competitors in the electric vehicle market, along with a price war in China that has weighed on European automakers’ export earnings.
The article also points to additional costs tied to the shift from petrol to electric vehicles, as well as the impact of US tariffs on the sector. It notes that other manufacturers, including Volkswagen, Stellantis and Ford, have turned to partnerships with Chinese rivals to build and sell in Europe.
BMW’s move follows leadership change at the automaker, with Milan Nedeljković taking over as chief executive in May after previously heading production. The spokesperson said the company is proactively shaping changes in its operating environment, including technological transformation, geopolitical uncertainties, changing market conditions and developments in China.