BMW will cut about 8,000 jobs worldwide through natural attrition and a voluntary severance program in Germany from late 2026 through 2027, with more than half of the cuts likely in Germany where most staff are based.

The move follows similar restructuring plans from VW, Mercedes, Audi, and Porsche as the industry faces a tougher China market, slowing sales, and pressured profitability.

New CEO Milan Nedeljković defends the cost-cutting as essential to adapt to structural shifts and cites non-market-friendly policies as a reason to streamline.

The restructuring is part of a profitability and competitiveness push, aimed at faster, more efficient changes to BMW’s business model via slimmer structures and processes.

Extensive talks with the works council culminated in a formal agreement signed recently after six weeks of negotiations.

BMW’s share price has fallen sharply year-to-date, with a modest rebound recently as investors weigh the restructuring and earnings outlook.

The plan was announced about a month into Nedeljković’s tenure, signaling its impact on the company’s outlook.

The report on the plan carries a timestamp and notes an estimated nine-minute read, authored by Christoph Kapalschinski.

Experts emphasize staying competitive by accelerating electrification while managing costs and ensuring a well-structured, voluntary workforce reduction.

Macro and geopolitics—sanctions, the Iran situation, and rising fuel costs in China—are reducing combustion-engine sales and making EVs more attractive in Europe.

The update is reported by Die Zeit, with sources including dpa and AFP, dated July 29, 2026.

The measures follow prior profit warnings and intensified cost-cutting programs, alongside declining demand and competitive pressure from international rivals and external risks.