BMW China commences layoffs affecting 1,800 employees, report says

BMW China has reportedly begun a workforce reduction, with approximately 1,800 employees -roughly 10% of the total headcount at BMW Brilliance Automotive (BBA) – being laid off as of November 2, 2026.

The layoffs, confirmed by multiple employees to AI4Robo, affect both production-line (P-grade) and administrative (G-grade) roles, though most affected are frontline production staff at the company’s headquarters in Shenyang, Liaoning Province.

Compensation and impact

According to staff reports, the company is offering a severance package calculated as “N+5.” The “N” component is based on pre-tax monthly salary, while the “5” is based on base salary, excluding performance bonuses. While BMW has not issued an official statement regarding the China-specific layoffs or confirmed whether they are part of a broader global restructuring, the move follows a period of reduced hiring and non-renewal of contracts over the past three years.

The impact has been widespread, affecting employees with varying tenures, from those with 3–5 years of service to long-term staff, including frontline management.

Global context: a broader restructuring

This development follows a major workforce reduction at BMW’s global headquarters in Germany. Reports indicate that the BMW Group plans to reduce its global headcount by approximately 8,000 employees – about 5% of its 154,000-strong workforce. Unlike the China operations, which have focused on production roles, the German restructuring has primarily targeted administrative, R&D, and project planning positions.

The German program, characterised by generous voluntary exit packages, saw high demand, with 5,000 application slots filled within three days, leading the company to close the application portal ahead of schedule.

Financial pressures

The layoffs come as BMW faces significant financial headwinds. In the first half of 2026, the BMW Group reported a 29.4% year-over-year decline in pre-tax profit, with the automotive segment’s EBIT margin falling to 3.6% – well below the company’s long-term target of 8% to 10%.

Global delivery figures for the first three quarters of 2026 show a 4.9% decline, totalling approximately 1.71 million vehicles. The Chinese market, traditionally BMW’s largest, has been particularly challenging, with deliveries of BMW and Mini vehicles dropping 21.8% to approximately 376,000 units during the same period. As a result, China’s share of BMW’s global sales has contracted from 32.3% in 2023 to 25.4% in 2025.

Brilliance BMW

BMW Brilliance Automotive Ltd. was established in May 2003 as a joint venture between the BMW Group and the Brilliance Group. Following changes to its shareholding structure, BMW currently holds a 75% stake, and Brilliance holds 25%.

Headquartered in Shenyang, Liaoning Province, the company’s business covers the research and development, procurement, production and sales of BMW vehicles in China, as well as after-sales services. Its Shenyang production base is the BMW Group’s largest worldwide. Models currently produced there include the all-new long-wheelbase BMW 5 Series, the all-electric BMW i5, the BMW 3 Series, X1, X3 and X5, as well as the Neue Klasse BMW iX3 and i3.