German luxury automaker BMW plans to eliminate around 8,000 jobs worldwide between October 2026 and the end of 2027 as part of a broad cost-cutting program aimed at improving efficiency and supporting its transition to next-generation electric vehicles.

The restructuring is expected to generate approximately 1 billion euros ($1.14 billion) in one-time costs, including voluntary severance packages for employees in non-production positions in Germany, according to a statement released by the Munich-based group.

Because the voluntary redundancy program applies only to employees in Germany, more than half of the planned job reductions are expected to take place in the company's home market.

At the end of 2025, BMW employed approximately 154,500 people globally, with more than 80,000 employees based in Germany.

According to dpa, the workforce reduction reflects BMW's efforts to streamline spending after years of significant investment in its Neue Klasse electric vehicle platform, which has now moved from the intensive development phase toward production and commercialization.

The company is seeking to improve profitability while adapting to slowing demand in parts of the global automotive market, rising production costs, and increasing competition in the electric vehicle sector.

BMW has not announced any plant closures and has indicated that the restructuring will primarily rely on voluntary measures rather than compulsory layoffs.

The announcement comes as Germany's automotive industry undergoes one of its biggest transformations in decades, driven by the shift from internal combustion engines to electric mobility, tighter emissions regulations, and intensifying competition from Chinese electric vehicle manufacturers.

BMW is the latest major German automaker to announce workforce reductions.

Volkswagen and Mercedes-Benz have also unveiled cost-cutting initiatives in recent months, while Porsche, Volkswagen's luxury sports car subsidiary, announced earlier this week that it plans to eliminate an additional 5,000 jobs in Germany, increasing its total planned domestic workforce reduction to about 8,900 positions.

Industry analysts say the job cuts reflect broader structural changes affecting Europe's automotive sector, as manufacturers invest heavily in electrification, digital technologies, battery production, and software development while attempting to reduce operating costs amid weakening demand in several key markets.

Despite the restructuring, BMW has reaffirmed its long-term commitment to electric mobility. The company expects the Neue Klasse lineup to play a central role in its future product strategy, with several new fully electric models scheduled to enter global markets over the next two years.

The latest announcement underscores the mounting pressure facing Europe's car industry as manufacturers balance massive investments in clean technologies with the need to remain competitive in an increasingly challenging global market. (ILKHA)