BMW’s internal website crashed after offering generous severance packages to reduce its workforce.
22/10/2026 21:00
Updated to
22/10/2026 21:00
BMW has launched one of the most notable workforce reduction programs in the German industry. The manufacturer aims to cut around 8,000 jobs as part of its restructuring, and to encourage voluntary resignations, some employees reportedly received severance packages exceeding 650,000 euros. Interest was so high that BMW closed registrations early after reaching its target ahead of schedule. The company is willing to make an immediate substantial outlay because it estimates that cost cuts will save approximately 1 billion euros annually starting in 2028.
The scale of some compensation amounts helps illustrate what happened. BMW offered tens of thousands of employees in Germany the option to see how much they would receive if they agreed to leave the company voluntarily.
The interest was so high that the internal portal became overloaded just a few hours after it went live.
Over 650,000 euros in some cases
According to internal documents and information from industry sources cited by Handelsblatt, certain workers have received offers exceeding 650,000 euros.
BMW does not confirm individual amounts and states that severance payments are calculated based on standard criteria, but they depend on specific factors such as salary, length of service, and job category.
The figures show that some packages exceed those recently offered by other German giants. Volkswagen provided approximately 404,700 euros in certain cases under its previous restructuring program, while Mercedes-Benz offered around half a million euros to some long-serving team leaders.
BMW also includes a so-called “Turbo Bonus,” an additional bonus for those who leave the company early.
BMW Had to Close Applications Early
The paradox is that the manufacturer found more volunteers than it could initially process. BMW confirmed on October 20 that it had reached its program’s goal ahead of schedule and no longer accepts new applications. Thousands of employees had expressed their willingness to leave.
That doesn’t mean they will all eventually leave the company. The system relies on mutual willingness: the employee must agree to leave, and BMW also must approve each agreement individually.
In Germany, the program is aimed mainly at so-called indirect workers, such as administrative, management, and certain development staff. Positions directly related to production were excluded.
Spend now to save 1 billion euros per year
Paying hundreds of thousands of euros to certain employees might seem contradictory within a program aimed at cutting costs.
The explanation lies in the long term. BMW estimates that reducing around 8,000 jobs along with other measures will result in annual savings of about 1 billion euros starting from 2028.
The company is also simplifying its management structure and aims to cut certain management functions by about 20%. This adjustment comes as BMW faces increasing pressure on its profit margins, especially difficulties in China, one of its historically most important markets. In the third quarter of 2026, its sales there dropped by nearly 25%.
BMW is thus paying an extraordinarily high price to streamline its structure quickly. And the success of these redundancies has created an unusual situation: the challenge is no longer convincing employees to leave, but deciding which of all the volunteers will be able to do so.