Working for BMW used to sound like a pretty safe career choice.
A globally recognised German brand, premium positioning and millions of customers.
But even BMW isn't having a good time these days.
BMW Brilliance, BMW's joint venture in China, has reportedly started laying off around 1,800 employees, representing roughly 10% of its workforce.
The layoffs reportedly began on November 2 in Shenyang, and they aren't limited to office staff. The majority of those affected are frontline production workers.
Some have worked there for just three to five years. Others have spent more than a decade with the company. Even a 57-year-old employee, reportedly just three years away from retirement, is among those affected.
The Compensation Isn't Bad. The Situation Is.
According to employee reports, affected workers are being offered compensation based on the N+5 formula.
For those unfamiliar with compensation system, N generally refers to the number of years worked, while the additional five months are calculated based on base salary, excluding performance bonuses.
Not exactly pocket change, but nobody joins a company hoping to collect a redundancy package.
What's more concerning is that BMW Brilliance has reportedly largely stopped external recruitment for nearly three years. Contract non-renewals have also been happening across different departments.
This doesn't look like a sudden one-off decision. It looks more like a longer restructuring process.
And here's where things get more interesting.
During the first three quarters of 2026, BMW and MINI delivered only approximately 376,000 vehicles in China, a decline of 21.8% year-on-year.
That's a pretty significant drop.
Meanwhile, China's domestic EV manufacturers have been expanding their presence, competing aggressively on pricing, technology, features and increasingly sophisticated products.
Foreign brands that once enjoyed strong reputations and premium positioning are now facing a very different competitive environment.
Chinese consumers have more choices, and the old assumption that a foreign badge automatically commands a premium is becoming harder to rely on.
And BMW Isn't the only one feeling the pressure
There's also the report about Beijing Benz, another German-Chinese automotive joint venture, swinging from profit into loss.
Put these developments together and an uncomfortable question emerges:
Is China's automotive industry entering a new phase where foreign manufacturers can no longer rely on their old advantages?
If you're working in China's automotive industry, especially for foreign manufacturers or their suppliers, these developments are worth paying attention to.
The impact could extend beyond carmakers themselves, affecting suppliers, logistics companies, dealerships and other businesses connected to the automotive supply chain.
On top of everything, China's automotive industry is changing fast. And I can't help wondering: Are foreign brands adapting quickly enough to survive?
What do you think? Is this just a temporary downturn, or are we witnessing a much bigger shake-up in China's automotive industry?
Oh, and one last thing!
If you shop on Taobao, our Cashback Tool is your best friend. It unlocks internal voucher and pays you, well cashback for your Taobao shopping, just join our group below to find out more.
