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BMW cuts about 1,800 jobs at its Chinese joint venture
BMW Brilliance is reportedly cutting around 1,800 jobs at its Shenyang operations, with redundancies beginning on 2 November as sales decline weighs on profitability in 2026.
By George Kensington · 4 min read
BMW is reportedly cutting around 1,800 jobs at its Shenyang operations in China, with the reductions set to begin on 2 November. The job losses are being carried out by BMW Brilliance, the company's joint venture in the country, and are linked to falling sales that are expected to pressure profitability in 2026.
According to the reports, affected employees will receive severance packages calculated on an N+5 basis, a common formula in China that pays out five months' salary for each year of service, plus an additional month. The figure of 1,800 positions represents a significant reduction for a plant that has long been one of the German manufacturer's most important production bases outside Europe. The cuts are reported to affect the Shenyang operations specifically, which is where the joint venture's main production facilities are located.
The move comes as BMW and its rivals contend with a tougher market in China, where foreign carmakers have lost ground to domestic manufacturers offering electric vehicles and advanced technology at lower prices. Slowing sales have forced several international brands to review their capacity and cost structures, and BMW's decision reflects the pressure on volumes in the country. The reported timing, with redundancies starting in early November, suggests the company is moving quickly to bring its cost base into line with current demand rather than waiting for the next financial year to begin.
The reported cuts underline how central the Chinese market is to BMW's global business. Shenyang has been the focus of substantial investment by the joint venture over the past two decades, and the plant builds vehicles for local customers as well as supplying other markets. A reduction of this scale would mark one of the more significant workforce adjustments the manufacturer has made in the country in recent years, and it lands at a point when the group is facing a sustained slowdown in one of its largest sales regions.
The sales decline behind the decision is also tied to the wider competitive picture. Domestic Chinese manufacturers have expanded quickly in electric vehicles and in software-led features that appeal to buyers, leaving established foreign brands to defend their share through price and product updates. Analysts have pointed to the need for carmakers to match their cost base to current demand while they work to win back ground from these rivals, and a leaner workforce in Shenyang would be one way to protect margins during that period.
Whether the reported redundancies are accompanied by a wider restructuring plan, or by changes to production schedules, has not been detailed in the available reports. The source material does not include a formal statement from BMW confirming the figures or describing how many roles will be affected in each department, and the scope of the programme beyond the initial November date remains unclear. BMW's position on the numbers, and the precise shape of the programme, will be closely watched as the timetable approaches and as the company sets out its expectations for profitability in 2026.
Source: motor1.com
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