German automotive giant BMW is preparing to part ways with thousands of employees in Germany by the end of 2027. The company will reduce its workforce, particularly in administrative and development units, as part of a voluntary redundancy program.
8 Thousand People to Be Affected
According to a statement from BMW, the voluntary redundancy program will be implemented in line with an agreement reached between the company management and employee representatives. The program will not cover production facilities, targeting only employees in administrative and development departments.
Sources close to the matter indicate that the company's total workforce in Germany is expected to decrease by approximately 8,000 people. Munich-based BMW currently has a global workforce of around 150,000.
With this decision, BMW joins other German automotive manufacturers that have announced layoffs. Previously, Volkswagen and Mercedes-Benz had agreed on downsizing programs affecting tens of thousands of employees.
The sector is under severe pressure due to the high costs of transitioning to electric vehicles, increasing competition from Chinese manufacturers, and customs tariffs imposed by the US.
Meanwhile, Porsche announced earlier this week that it expanded its restructuring plan, aiming to reduce its workforce by approximately 20 percent by 2035. During the same period, thousands of employees protested at Audi's Neckarsulm factory, part of the Volkswagen Group. This facility is considered one of four factories in Germany at risk of closure under Volkswagen's restructuring plans.
CEO: Rules of the Sector Have Changed
BMW CEO Milan Nedeljkovic stated at a meeting with employees in Munich on Wednesday that the rules governing the automotive sector have significantly changed, impacting the foundation of the company's business model.
Nedeljkovic acknowledged that a challenging period lies ahead, emphasizing that the measures taken are crucial for BMW to achieve a more profitable and competitive structure.
0 Comments: