BMW Cuts 8,000 Jobs in Strategic Recovery Plan
BMW is cutting 8,000 German jobs and expanding luxury offerings to recover profit margins following weak performance in China.
During a capital markets day in Munich, BMW unveiled a strategic recovery plan to rebuild profit margins after three profit warnings tied to weak performance in China. The carmaker is implementing a redundancy program affecting approximately 8,000 jobs in Germany to reduce operational costs.
To drive future growth, the company will expand its premium offerings starting in 2027. This expansion includes a new luxury SUV positioned above the X7 and broadened ranges for the M and Alpina brands. BMW is also prioritizing its Neue Klasse electric range, specifically the iX3 SUV, and has committed a 2 billion euro investment in German production for the next-generation 3 Series sports sedan.
These measures aim to lift the company's automotive margin from a recent 2.3% to a mid-term target of 3% to 5% by 2028. The long-term goal is to reach a margin of 8% to 10% by the early 2030s.
