BMW to lay off 8,000 people

German automaker BMW will cut approximately 8,000 jobs—mostly in Germany—as part of a cost-saving program launched in response to the weakening Chinese market and rising cost pressures.

According to reports on Wednesday in the German press, an agreement was reached following weeks of negotiations between BMW management and employee representatives regarding a voluntary lay off program.

Under this program, the lay off process will begin in October 2026 and continue through the end of 2027.

The program will reduce the total workforce by 8,000 employees.

At BMW, which employs a total of 150,000 people worldwide and approximately 84,000 in Germany, a voluntary lay off offer will be extended to about 40,000 employees not directly involved in production.

The program will primarily cover employees working in management, R&D, planning, and administrative departments.

The amount of severance pay to be paid to employees will be determined based on salary and seniority.

In June, BMW revised its 2026 sales and profit forecasts downward, primarily due to a decline in demand in the Chinese market.

The German automaker announced that it would implement cost-saving measures in response to US tariffs, rising costs, and global competitive pressures.