BMW to cut 8,000 German jobs as Chinese rivals batter automakers

BMW is preparing to shed as many as 8,000 jobs in Germany through a voluntary redundancy programme agreed with its works council. The cuts will target the Munich-based company's administration and development divisions, leaving production operations untouched. The restructuring comes just months after Milan Nedeljković, formerly head of production, took over as chief executive in May.

The job losses represent 5% of BMW’s total workforce of about 160,000 people. They are designed to free up capital as the company navigates a costly transition from internal combustion engines to electric vehicles. "The BMW Group is proactively shaping the profound changes taking place in its operating environment. These include the technological transformation of the automotive industry, geopolitical uncertainties, changing market conditions and developments in China," a spokesperson said.

A sector under siege

BMW’s retreat is not an isolated event but the latest symptom of a structural crisis facing Europe’s automotive industry. Chinese manufacturers have rapidly captured the electric vehicle market while simultaneously sparking a brutal price war in China. This has erased a once-lucrative export market for European premium brands, compounding the financial strain of building new electric lineups and absorbing the impact of US tariffs.

The scale of the broader German restructuring is staggering. Volkswagen, the country’s largest carmaker by volume, confirmed plans on Friday to cut up to 100,000 jobs from its 650,000-strong workforce. Those measures include closing four factories and halving its model range.

Even profitable marques are feeling the squeeze, with Porsche agreeing to another 5,000 job cuts this week to bring its total planned redundancies to 9,000 by 2035. Although the Stuttgart-based company reported a profit before tax of €1.4bn on Wednesday, up from €1.1bn a year earlier, its sales in China slumped by 30% in the first half of the year. The withdrawal of US subsidies for electric vehicles like the Porsche Taycan further damaged its North American performance.

The pain is spreading beyond Germany. Aston Martin reported a first-half loss before tax of £154m, including an £89m loss in the second quarter. The British luxury brand’s sales in China and the US have faltered, though its share price still rose 3.5% on Wednesday after reporting a 38% revenue increase to £629m.

For European investors and policymakers, these cascading job cuts signal that the continent's historical advantage in premium auto manufacturing is being aggressively dismantled. With several major manufacturers now turning to partnerships with Chinese rivals simply to survive, the industry is entering a period of profound and painful realignment.