BMW Cuts 8,000 Jobs Due to Competition from BYD and Tesla

BMW is launching a program to cut around 8,000 jobs worldwide due to declining sales in China and increasing competition from BYD and Tesla. Employees in Germany are being offered voluntary severance packages. The program will affect staff in research, development, planning, and corporate functions, but will not impact factory workers. Optimization of management positions is also planned. The cuts will begin in October and continue until 2027, with an expectation of improved profitability by 2028. In Germany, guarantees protect automotive workers from forced layoffs, which forces companies to offer generous packages for voluntary departures. At the end of last year, there were 87,436 employees in Germany, accounting for more than half of BMW's total workforce. German automakers, including Volkswagen, are cutting costs due to declining sales and high production costs in Europe. BMW is also facing pressure from the consequences of the war in the Middle East and increasing competition from local electric vehicle manufacturers in China. The company's workforce in the country has decreased by 2.3% compared to the previous year. BMW shares in Frankfurt rose by 1.9% amid news of the restructuring, although they have fallen by more than a third over the year.

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