BMW is moving to cut 8,000 white-collar positions by the end of 2027, offering voluntary severance packages that in some cases reach 650,000 euros (about 4.87 million yuan, or roughly $686,000), as the automaker responds to falling profit margins in its electric-vehicle business and intensifying competition, according to PCauto.
The German carmaker has set two departure deadlines - March 31, 2027 and October 31, 2027 - and is offering what it calls a "turbo bonus" for employees who leave early, meaning the sooner a worker applies, the higher the extra payout. The scheme is open to white-collar staff only and does not include frontline production workers.
Employees can choose to receive their severance as a lump sum or in installments, or roll the money into a pension plan, commercial insurance, or a combination of those options. Workers aged 55 and above who take the package will still be treated as retirees for certain benefits, including employee discounts on new and used BMW vehicles.
The scale of interest caught the company off guard. When BMW opened its internal HR portal, called HR4Me, for employees to check their compensation, around 40,000 eligible staff logged on at the same time, overwhelming the system and causing it to crash. After the portal was restored the next day, application numbers continued to climb, and BMW has now paused new applications to process the submissions already received.
Pressure on legacy automakers
The severance figures underline the cost pressures facing traditional carmakers as they pivot to electric vehicles. PCauto notes that Mercedes-Benz's recent layoff package topped out at about 500,000 euros, while Volkswagen's maximum was around 405,000 euros - both below BMW's ceiling.
BMW's move comes as European automakers grapple with slower-than-expected EV adoption, price competition from Chinese brands, and the heavy investment required for battery-electric and software development. The company has not disclosed how many of the 40,000 employees who checked their eligibility will ultimately take the package.
The episode also highlights a broader trend: legacy automakers are trimming white-collar headcounts even as they hire for software and EV-related roles. For BMW, the voluntary scheme is designed to reduce costs without resorting to compulsory redundancies, a strategy that has become increasingly common across the German auto industry.
