BMW is apparently willing to spend some serious money to reduce its workforce, with insiders claiming that certain employees have negotiated severance packages exceeding €650,000. The German automaker reportedly wants to eliminate around 8,000 positions by the end of 2027, and its generous offers are attracting considerable attention.
According to German business newspaper Handelsblatt, BMW’s voluntary departure program has proved so popular that the company temporarily stopped accepting new expressions of interest. That’s an unusual problem for an automaker trying to convince thousands of employees to leave.
The interest was evident almost immediately after BMW sent personalized offers to tens of thousands of eligible employees. Its internal portal reportedly crashed under the demand, leaving staff temporarily unable to view their potential payouts.
BMW hasn’t confirmed the largest reported payments, but the figures suggest the company is prepared to make substantial upfront investments to achieve longer-term savings.
Some Employees Could Receive Enormous Payouts
Handelsblatt reports that individual severance agreements have exceeded €650,000, citing industry insiders. BMW declined to discuss specific amounts, explaining that packages are calculated individually using consistent principles.
The reported sums surpass some previously disclosed offers from rival German automakers. Volkswagen’s earlier program included payments approaching €405,000, while certain long-serving Mercedes-Benz team leaders reportedly received around €500,000.
BMW is also offering an additional incentive for employees who agree to leave sooner. Its so-called Turbo Bonus rewards employees who agree to leave earlier, with departure dates offered for March 31 and October 31, 2027.
The Benefits Go Beyond Cash
An internal agreement template reviewed by Handelsblatt reveals several payment options, including lump sums, installments, and contributions toward retirement arrangements.
Some departing employees may also retain special purchasing privileges for BMW vehicles. Eligible staff can potentially purchase their company cars, while certain senior employees may be allowed to buy two.
Importantly, the program operates on mutual consent, meaning both BMW and the employee must agree to the departure.
BMW Wants To Save €1 Billion Annually
Behind the expensive severance packages is a substantial cost-cutting target. BMW reportedly expects the workforce reduction to save approximately €1 billion annually from 2028.
The company is facing difficult market conditions, particularly in China, where its vehicle deliveries fell by roughly 25 percent during the third quarter of 2026. Growth elsewhere hasn’t fully offset that decline.
For BMW, paying large sums today could mean significantly lower operating costs in the coming years. Judging by the overwhelming initial response, finding employees interested in the offer might be the easiest part of the process.