BMW is offering some employees severance packages worth more than €650,000, or approximately $730,000, as it seeks to eliminate 8,000 jobs by the end of next year. Interest in the voluntary departure program was reportedly so strong that the company’s employee portal experienced technical problems after the offers were distributed.

BMW emailed tens of thousands of employees last week with a link to an online portal showing their proposed termination agreements. Handelsblatt obtained one of the agreements and reported that several employees had been offered six-figure payments to leave the automaker.

Payments vary by employee

The value of each package depends on factors including the employee’s age, length of service and salary. Workers who accept can receive the money as a lump sum or in installments. They can also direct part of the payment toward retirement savings, an insurance policy or a combination of those options.

The program includes two potential departure dates. Employees leaving by March 31, 2027, may qualify for an additional “Turbo Bonus,” although the amount has not been disclosed. Those who leave by October 31, 2027, would not receive the extra payment.

Employees who turn 55 by October 31 next year could also become eligible for BMW’s “pensioners” program. That program includes benefits such as employee pricing on new and used BMW vehicles. Some high-ranking employees may additionally be allowed to purchase the company car they currently use.

BMW prioritizing employee interest

Because the response was reportedly greater than expected, BMW must now prioritize the expressions of interest submitted through the portal. The company will then determine which employees receive departure offers and the amount each person will be paid.

The costly severance packages form part of BMW’s broader effort to reduce expenses. Chief Executive Milan Nedeljković is targeting €1 billion, or approximately $1.12 billion, in annual savings from 2028. The goal is to increase BMW’s operating margin from 3% to 5% by that year, followed by a longer-term target of 8% to 10% in the early 2030s.

Nedeljković became BMW’s CEO in December last year and took over from Oliver Zipse in May 2026. During his tenure, BMW is pursuing a rollout of 40 new or updated models by the end of 2027. The upcoming vehicles already announced include the new i3 and 3-Series.