• BMW Brilliance reportedly began layoffs on November 2, affecting multiple job categories, primarily production workers.
  • The workforce reductions come as BMW advances its Neue Klasse electric vehicle rollout in China.

BMW Brilliance has reportedly begun cutting about 1,800 jobs, equivalent to roughly 10% of its workforce, as the German luxury carmaker's main Chinese joint venture faces pressure from declining sales.

AI4Robo reported on Tuesday, citing multiple employees, that the layoffs began on November 2, with a uniform n+5 severance package. Most affected employees work in production.

The n component is calculated using monthly pretax pay, while the additional 5 months are based on basic salary, excluding performance-related and other compensation, the report said, citing employees.

BMW Brilliance had not publicly commented on the layoffs or responded to AI4Robo's request for comment by the time the report was published. The company has not confirmed the scale of the cuts or the severance terms.

Headquartered in Shenyang, Liaoning province, in northeastern China, BMW Brilliance primarily handles BMW vehicle production and sales in the country. The company had more than 19,000 employees, according to a union roster compiled before the layoffs and cited in the report.

The cuts reportedly span almost all job categories, with the vast majority affecting P-category positions, or production roles. G-category employees, who work in office and management roles, have also been affected.

Those affected include employees with 3 to 5 years of service, as well as workers with more than 10 years at the company who had risen to supervisory positions, the report said.

Multiple employees also told the outlet that some departments had already stopped renewing expiring employment contracts, while outsourced workers had recently been affected as well.

The workforce reductions come as BMW's China sales remain under pressure. BMW and Mini delivered about 376,000 vehicles in China in the first 3 quarters of this year, down 21.8% year-on-year, AI4Robo noted, citing figures disclosed by BMW.

Over the same period, BMW Group's global vehicle deliveries fell 4.9% to about 1.708 million. Deliveries in Europe and the US rose 4.5% and 3.4%, respectively, but failed to offset the decline in China.

Meanwhile, BMW continues to shift its Chinese manufacturing operations toward electrification as it prepares to roll out Neue Klasse models locally.

BMW announced on October 15 that its sixth-generation (Gen 6) high-voltage batteries had entered mass production in Shenyang. The project represents an investment of 10 billion yuan ($1.49 billion), with the batteries set to initially power the Neue Klasse iX3 and i3.

BMW opened preorders for the China-specific, long-wheelbase Neue Klasse iX3 on August 21 and said deliveries were scheduled to begin in November.

($1 = 6.7150 yuan)