BMW is offering some employees severance packages exceeding €650,000, or about $730,000, as part of a voluntary program to cut 8,000 jobs by the end of next year.
The offer, sent to tens of thousands of employees last week, reportedly caused BMW's online employee portal to malfunction due to overwhelming interest.
According to termination agreements obtained by Handelsblatt, the payout amount depends on the employee's age, tenure, and salary.
Recipients can choose to receive the payment as a lump sum, in installments, as a contribution to their retirement savings account, as a payment to their insurance policy, or a combination of these options.
Early Departure Incentive
BMW is offering two departure dates for workers who accept the severance deal.
Those who leave by March 31, 2027, will be eligible for an additional, undisclosed 'Turbo Bonus'.
Alternatively, they can leave by October 31, 2027, but without the extra bonus.
Employees who turn 55 by October 31 next year could gain access to the 'BMW pensioners' program, which includes privileges such as employee deals on new and used BMWs.
High-ranking staff may also be given the chance to buy any company car they are currently using.
The high level of interest means BMW must now prioritize expressions of interest before deciding who will be selected for severance and the exact amount they will receive.
While six-figure payouts may seem excessive, BMW is eager to slash costs, and salaries are often among a company's biggest expenses.
BMW Chief Executive Milan Nedeljković wants the company to save €1 billion ($1.12 billion) annually from 2028 to boost its operating margin from 3% to 5% by that date.
It has also set a long-term goal for its margin to rise to between 8% and 10% in the early 2030s.
Nedeljković was named BMW's new CEO in December last year and took over from outgoing boss Oliver Zipse in May 2026.
Under his leadership, BMW is embarking on an ambitious rollout of new models, totaling 40 new or updated cars by the end of 2027.
Several of these have already been announced, including the new i3 and 3-Series.
