BMW offers employees up to €650,000 to leave under voluntary redundancy scheme
BMW has offered some employees severance packages worth more than €650,000 as part of a voluntary workforce reduction programme, Qazinform News Agency correspondent reports, citing Focus.
The Munich-based company launched the programme as part of a broader plan to cut around 8,000 jobs by the end of 2027. The reductions are expected to focus on administrative and development positions, while production jobs are excluded from the scheme.
Individual severance payments can exceed €650,000. The amount depends on factors including an employee's salary and length of service.
The automaker has temporarily paused the scheme after receiving an unexpectedly high number of inquiries.
Earlier, Qazinform News Agency reported that BMW planned to cut its divisions and associated management roles by 20% by mid-2027 as it expands AI use to boost efficiency and profitability.
Other automakers have also announced substantial workforce reductions as they seek to lower costs amid intensifying competition and the transition to electric vehicles. Volkswagen agreed with employee representatives in December 2024 to reduce its workforce at German locations by more than 35,000 by 2030.