BMW pauses severance program after strong demand
BMW is temporarily suspending its voluntary severance program. The company first plans to process the large number of requests already received.
BMW has temporarily paused its voluntary severance program because the number of requests exceeds the available capacity. Employees were able to access personal offers through an internal HR portal; heavy traffic temporarily brought the system down on October 9. After restoring access, BMW is now putting the program on hold in order to review and process the requests already received.
Offers for indirect areas
The severance amounts are calculated mainly on the basis of income and length of service. For long-serving employees with higher incomes, the offers can reach several hundred thousand euros. The program is aimed at employees in the indirect area of BMW AG, meaning mainly functions outside direct vehicle production, such as administration and development. It applies only in Germany; at the end of last year BMW AG employed just over 85,800 people.
Part of a larger savings program
BMW wants to cut around 8,000 jobs worldwide by the end of 2027. In addition to voluntary termination agreements, the company is also relying on partial retirement and natural fluctuation. BMW must initially provide a three-digit million-euro sum for the severance program; from 2028, the manufacturer expects annual savings of around one billion euros. The organization is also to become leaner: by mid-2027, BMW wants to reduce the number of divisions and associated management functions by one fifth. Employment security remains in force as long as BMW posts a pre-tax profit.
The background to the savings course includes weaker demand in China and trade conflicts between the U.S., Europe and China. In mid-June, BMW significantly lowered its profit forecast for the current year. It remains open whether the severance program will be reopened after the existing requests have been processed.
