Chief Executive Milan Nedeljkovic outlined the necessity for structural efficiency during a meeting with employee representatives on Wednesday. The proposed cuts, which will run through the end of next year, strictly exclude production roles. This reduction targets a significant slice of the company’s 80,000-strong German workforce as the manufacturer grapples with high energy costs and shifting consumer demand. The decision follows a sobering revision of the company's financial guidance in June, prompted by a 30% slump in Chinese sales during the second quarter.

BMW is not alone in this retreat. The broader German automotive sector is currently undergoing a painful contraction to offset high domestic manufacturing costs and the transition to electric vehicles. Volkswagen is navigating its own massive restructuring, aiming to cut up to 100,000 jobs across its brands by the end of the decade. Meanwhile, Mercedes-Benz has already initiated voluntary redundancies and is shifting production to lower-cost hubs like Hungary to protect its bottom line.