In late July 2026, Munich and Stuttgart are reporting a new setback for the German automotive industry. The automotive crisis is intensifying as BMW and Porsche plan to cut a combined total of around 13,000 additional jobs. BMW’s global workforce could shrink by approximately 8,000, while Porsche is set to eliminate another 5,000 positions by 2035. Weak business in China, competition from Chinese rivals, high transformation costs, and tariffs are driving these cost-cutting programs. At BMW, the cuts primarily affect administration and development, while Porsche is downsizing operations in Zuffenhausen and Weissach.
Job cuts now reaching BMW
BMW plans to cut several thousand jobs in Germany by the end of 2027. To this end, the company and the works council have agreed on a voluntary severance program. In addition, natural attrition is expected to reduce the size of the workforce. For the time being, BMW is excluding direct production roles from these measures.
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Industry sources anticipate a global reduction of around 8,000 jobs. However, BMW has not officially announced a final total figure for Germany. The group employs approximately 150,000 people and had previously been considered more stable than several of its competitors. Now, the automotive crisis is reaching the Munich-based premium manufacturer, with significant consequences for the workforce.
Weakness in China forces manufacturers to cut costs
BMW had already lowered its profit forecast in June. Business in China, in particular, performed more weakly than expected. At the same time, local manufacturers there are intensifying competition regarding pricing and innovation. The job cuts are intended to reduce costs and accelerate improvements in profitability.
Porsche has decided to cut another 5,000 jobs by the end of 2035. Combined with earlier programs, this brings the total number of job losses there to around 9,000. The sports car manufacturer is achieving this through natural attrition, partial retirement schemes, and voluntary severance agreements. However, Porsche has ruled out compulsory redundancies at its Zuffenhausen and Weissach sites until 2035.
Porsche Demands Concessions from Workforce
However, the guarantee regarding plant locations comes at a high price for the remaining employees. Porsche is withholding portions of negotiated pay increases and reducing the maximum Christmas bonus. Furthermore, the company is limiting remote work to eight days per month moving forward. This overall cost-cutting package accompanies investments totaling €2.1 billion in Zuffenhausen and Weissach.
In the first half of 2026, Porsche delivered 122,306 vehicles worldwide. Sales volume fell by 16 percent, while deliveries in China plummeted by 32 percent. The automotive crisis is thus affecting two manufacturers that were long considered exceptionally profitable. For Germany’s industrial hubs, these simultaneous cutbacks mean fewer secure jobs and reduced planning certainty.
Author: Blackout News
Sources: Reuters (29.07.26) – Porsche Newsroom (29.07.26) – Welt (29.07.26) – Reuters (27.07.26)