German car manufacturer BMW has launched a voluntary redundancy scheme as part of a plan to cut around 8,000 jobs by the end of 2027. According to Bild, compensation for individual employees could reach €600,000. A large number of applications has overwhelmed the group’s internal portal, so the company has temporarily suspended the acceptance of new applications.
Briefly about the main points
- BMW plans to cut around 8,000 jobs by the end of 2027.
- Bild reported that individual compensation payments could amount to as much as €600,000.
- The *Handelsblatt* reported on individual packages that could amount to as much as €650,000.
- A personalised settlement was offered to around 50,000 employees.
- From 2028, the group expects to save around €1 billion a year.
The amount of the payment depends on length of service, age and salary
According to Bild, citing internal sources BMW, the highest payouts are offered to experienced employees on high salaries. For some employees, the compensation may amount to approximately €50,000 for each year of service. Under the right circumstances, an employee with 12 years’ service could receive around €600,000.
The amount is determined on a case-by-case basis, taking into account salary, age and length of service with the group. Handelsblatt, who had seen BMW’s internal documents, reported that severance packages could reach up to €650,000 in some cases. Some employees are also entitled to additional benefits following their redundancy.
The portal stopped working after the programme was launched on 8 October
The scheme was launched on 8 October, when tens of thousands of staff received letters from the HR department inviting them to review their individual terms and conditions. Around 50,000 employees were given the opportunity to calculate their potential compensation, although this figure does not mean that all of them submitted resignation applications.
According to Handelsblatt, the system stopped working on the very first day due to the volume of enquiries. BMW stopped accepting new requests in order to process those that had already been received. A spokesperson for the company confirmed to Bild that there had been significant interest from employees, but did not specify the number of applications.
The redundancies will mainly affect administration and development
BMW announced the restructuring in July 2026 and agreed the details with staff representatives. The group plans to reduce its workforce mainly through voluntary redundancies and natural attrition, with the biggest changes expected in administrative departments, research centres and development departments.
According to Reuters, the manufacturing divisions are not the main focus of the programme. Journalists also reported that staff at one of the divisions involved in autonomous driving technology were interested in compensation.
BMW expects annual savings in the billions after 2028
The company attributes these internal changes to a decline in demand for BMW cars in China, increased competition, US tariffs and significant expenditure on the development of new models. In the second quarter of 2026, the group’s pre-tax profit fell by 35.1% to €1.697 billion.
According to Bild’s estimates, the compensation scheme could cost BMW around €1 billion in 2026, and even more the following year. However, from 2028 onwards, the group expects to save approximately €1 billion annually thanks to lower staff costs. At the same time, BMW plans to make wider use of artificial intelligence, streamline its management structure and optimise vehicle development.
