BMW offers severance packages up to 650,000 euros

BMW is offering voluntary severance packages of up to 650,000 euros to employees as part of a plan to reduce its workforce by 8,000 positions by the end of 2027. The scale of the compensation caused BMW's internal employee portal to crash due to high traffic after tens of thousands of staff members received emails with links to check their proposed payouts.

The specific amount offered to each employee depends on factors such as age, years of service, and current salary. Employees can choose to receive the compensation as a lump sum, in installments, or through a combination of payments into retirement savings and insurance contracts.

BMW has provided two departure windows. Those who agree to leave the company before March 31, 2027, are eligible for an additional, undisclosed “Turbo Bonus.” Employees leaving before October 31, 2027, will receive the standard severance package but will not qualify for the extra bonus. The job cuts are expected to focus primarily on administrative and development roles rather than production areas, with more than half of the affected workforce located in Germany.