BMW Group Plans to Cut 8,000 Jobs by End of 2027, Targeting Administration and R&D

BMW Group plans to cut approximately 8,000 jobs globally by the end of 2027. The program will begin in October 2026 and run through the end of 2027. The cuts will focus on administrative and research and development departments, with production operations excluded from the adjustment. BMW stated that the plan will not involve forced layoffs, instead offering compensation packages to encourage voluntary departures. The compensation packages are available only in Germany and will be determined based on employees' salary levels and years of service.

In its 2026 annual report, BMW signaled a modest reduction in headcount, setting a cap of 5% of total employees. According to BMW's website, the group had approximately 154,500 employees globally at the end of 2025. The planned reduction of roughly 8,000 jobs represents about 5.2% of the total workforce.

One underlying reason for the cuts is the completion of a phased research and development cycle. In recent years, BMW invested heavily in the development of the Neue Klasse, a new intelligent electronic and electrical architecture for pure electric vehicles. As the R&D work on this platform nears its end, the company's R&D spending as a share of revenue is expected to decline gradually. The layoffs are also seen as a key step for BMW to reduce fixed costs and improve operational efficiency.

Weak performance in the Chinese market is one of the biggest challenges facing BMW. In 2025, BMW Group reported full-year revenue of 133.453 billion euros, down 6.3% year-on-year; pre-tax profit of 10.236 billion euros, down 6.7%; and net profit of 7.451 billion euros, down 3.0%. Global deliveries for the year totaled 2.4637 million vehicles, up 0.5%. However, sales in China fell to 625,500 vehicles, a decline of 12.5%. In the first quarter of 2026, BMW Group posted revenue of 31.007 billion euros, down 8.1%; pre-tax profit of 2.348 billion euros, a sharp drop of 24.6%; and net profit of 1.67 billion euros, down 23.1%. Global deliveries in the quarter were 565,800 vehicles, down 3.5%, while China deliveries reached 144,000 vehicles, down 10%.

In the second quarter of 2026, BMW Group's global deliveries stood at 591,000 vehicles, down 4.9% year-on-year. Deliveries rose 7.6% in Europe, 9.5% in the United States, and 9.4% in Germany, but sales in China plunged 30.2% to just 117,800 vehicles. For the first half of 2026, BMW's cumulative deliveries in China reached 261,800 vehicles, down 20.4% from a year earlier. BMW noted that intensifying competition in the Chinese market, US tariffs, and geopolitical factors continue to raise operating pressure.