BMW to cut thousands of jobs

BMW is preparing to cut up to 8000 jobs in Germany through a voluntary redundancy program, becoming the latest major European carmaker to slash costs amid mounting pressure from Chinese rivals and slow EV demand.

According to The Guardian, the voluntary redundancy program was launched in Germany after it reached an agreement with employee representatives, with as many as 8000 roles to be eliminated.

Of BMW’s total workforce, thought to consist of around 160,000 people, the program is said to target administration and development positions, rather than employees in manufacturing.

A spokesperson for BMW said: "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."

The rise of Chinese manufacturers isn’t just affecting European brands like BMW, Porsche and Volkswagen, the latter of which recently announced it would cut around 140,000 jobs.

Plenty of brands are turning to partnerships with Chinese conglomerates to stay afloat.

Ford recently announced a joint venture with Geely to build electric SUVs at its underutilised Valencia factory in Spain, while Mazda has partnered with China’s Changan and Stellantis has branched out with its Leapmotor and Dongfeng tie-ups.

Chinese manufacturers have rapidly expanded at home and abroad, dominating EV sales in their domestic market, while delivering aggressively priced vehicles in key markets, including Australia.

The increased competition has forced established European brands like BMW to invest heavily into electrification to keep up – BMW’s $17 billion Neue Klasse is one extreme example of a carmaker choosing to develop its own tech inhouse.

It’s also forced some brands, like Fiat, to reevaluate their position in the Aussie market.

The rise of Chinese brands is no more obvious than here in Australia’s tariff-free market, where China has overtaken Japan as the largest source of new vehicles.

For consumers Down Under, the immediate impact of BMW’s job cuts is unlikely to be visible, but behind the scenes but it signals the struggle likely felt by many legacy brands fighting for survival in an increasingly challenging global market.

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