nuSep 30, 2026, 16:00

German employees at Mercedes-Benz and BMW face job losses

Automakers BMW and Mercedes-Benz are cutting jobs in Germany to address declining demand and increased competition from Chinese manufacturers. BMW is integrating artificial intelligence to replace some management functions, while Mercedes-Benz has warned of potential factory closures if cost-cutting targets are not met.

Major German automakers Mercedes-Benz and BMW are implementing significant workforce reduction measures due to weakening car demand and rising competition from China. BMW plans to automate various management tasks using artificial intelligence while cutting approximately one-fifth of non-management office positions, following an earlier agreement to eliminate eight thousand roles. The company aims to optimize its cost structure to remain competitive in the evolving automotive sector.

Meanwhile, Mercedes-Benz has reintroduced a voluntary departure scheme for its German employees to curb rising operational expenses. The company has warned that failing to achieve necessary cost reductions could result in the closure of two domestic manufacturing plants, a prospect that has already sparked protests among the workforce. With Mercedes employing 108,000 people and BMW supporting over 150,000 jobs in Germany, these cuts represent a significant shift for the nation's automotive industry as manufacturers prepare for difficult market conditions.

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Based on reporting by nu. Translated and condensed by LocalHeadlines.

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