BMW axes 8,000 jobs as Chinese rivals shake European auto industry
BMW is cutting up to 8,000 administrative and development roles in Germany, a move that underscores a brutal restructuring across the European auto sector as Chinese electric vehicle manufacturers erode profit margins and market share.
BMW is preparing to cut up to 8,000 jobs in Germany through a voluntary redundancy programme agreed with its works council. The reductions target administrative and development divisions, explicitly sparing production operations. The targeted staff sit within the Munich-based company's total workforce of about 160,000.
The layoffs signal a strategic shift under chief executive Milan Nedeljković, who previously headed production and took the top job in May. A BMW spokesperson said the group is "proactively shaping the profound changes taking place in its operating environment," pointing directly to "developments in China" alongside technological transformation and geopolitical uncertainties.
Legacy European automakers are struggling to defend market share against Chinese manufacturers that have swiftly dominated the electric vehicle sector. A fierce price war in China has eroded the lucrative margins that European brands historically derived from exporting to the region. Facing the immense capital requirements of transitioning away from combustion engines, alongside the impact of US tariffs, these brands are being forced to drastically restructure.
Sector-wide contraction
BMW’s announcement follows sweeping cuts at its domestic peers. Volkswagen confirmed plans on Friday to slash up to 100,000 jobs from its 650,000-strong workforce, which includes closing four factories and halving its model lineup. Porsche, the Volkswagen-controlled sports car maker, is also accelerating a severe restructuring, agreeing to 5,000 additional job cuts this week. By 2035, Porsche plans to eliminate 9,000 roles, equating to a fifth of its entire workforce.
Porsche’s cost-cutting comes despite a rise in first-half profit before tax to €1.4bn, up from €1.1bn a year earlier. However, its Chinese sales slumped 30% to 14,500 units in the first half of 2026, outpacing a 17% decline across the wider group. North American sales were further hit by the removal of US subsidies for electric vehicles like the Porsche Taycan.
The pressure has pushed several European manufacturers, including Stellantis and Ford, into strategic partnerships with Chinese competitors to maintain their foothold in Europe. The distress extends to niche players. Aston Martin reported a first-half loss before tax of £154m on Wednesday, following an £89m loss in the second quarter alone. Yet its shares climbed 3.5% after the company said performance had "materially improved," with revenue surging 38% to £629m. The British marque, which has endured persistent turmoil since its 2018 listing, continues to struggle in the US and China despite a 2020 rescue by billionaire Lawrence Stroll and previous headcount reductions.
