BMW Is Reportedly Offering Employees Up To €650,000 To Quit

Like nearly all legacy automakers, BMW is cutting costs by slimming its workforce and streamlining operations. The Munich-based company faces pressure to remain competitive in an increasingly challenging market, forcing it to rethink spending without compromising its ability to develop the next generation of cars. One way to do that is to encourage employees to leave voluntarily, reportedly with generous financial incentives.

In rare cases, BMW is reportedly willing to pay some employees more than €650,000 to leave, according to a new report. At current exchange rates, that works out to about $730,000. The voluntary departure program also includes bonuses for early leavers and extra perks for certain workers, including discounts on cars after they leave.

As previously reported, Germany’s largest premium automaker wants to cut around 8,000 jobs by the end of next year as it looks to reduce costs and streamline its organization. However, the generous severance offers have proved so popular that BMW has reportedly had to prioritize processing the expressions of interest it has already received.

According to Handelsblatt, which obtained a confidential sample termination agreement, some employees have been offered six-figure payouts, with individual cases reportedly exceeding €650,000. Predictably, BMW declined to comment on specific severance amounts or contractual details, so the highest figures should be treated as reported individual cases rather than standard offers.

BMW Is Offering A ‘Turbo Bonus’ For Employees Who Leave Early

BMW is giving eligible employees two departure dates to choose from: March 31, 2027, and October 31, 2027. Those who agree to leave earlier can receive an additional payment called the “Turbo Bonus,” encouraging them to decide sooner rather than later.

The company relies on mutual consent, meaning neither side can force the other to agree to leave under the voluntary program. The amount offered to each employee reportedly depends on individual circumstances, with age, salary, and years of service likely playing important roles. BMW says it determines the terms individually using consistent principles, but the sample agreement does not disclose a universal formula.

Employees can also choose how to receive their severance payments. The five options include a lump sum, installments, contributions to an existing retirement savings account, payments into an existing direct insurance policy, or a combination of these methods.

Some Employees Could Keep Their BMW Perks

Money isn’t the only incentive. The report says the agreement also gives certain departing employees benefits that extend beyond their final day at work.

Employees who turn 55 by the program’s end on October 31, 2027, may qualify for selected benefits available to BMW retirees. These include preferential terms when purchasing new or used BMW vehicles.

The program also includes provisions for company cars. Some employees in higher non-tariff pay grades may be allowed to purchase their final company vehicle under the applicable rules. Those in certain higher grades could even be eligible to buy a second car in the month they leave.

BMW’s program initially hit a technical issue when employees rushed to access their personal offers, temporarily overwhelming the internal HR portal. The company later confirmed that interest was high and is now prioritizing submitted expressions of interest.

In other words, BMW is offering substantial sums to shrink its workforce. Still, the unexpectedly strong response suggests that many employees are at least curious about what life beyond the company might look like. The bigger challenge will be reducing costs without losing the experience and expertise BMW needs to develop its next generation of cars, which may include a flagship SUV positioned above the X7.

Source: Handelsblatt (subscription required)