BMW reportedly plans to cut up to 8,000 jobs in Germany, the latest sign that Europe’s largest carmakers are reducing costs under pressure from Chinese competitors.

The Munich-based company has launched a voluntary redundancy program agreed with employee representatives, a BMW spokesperson said on Wednesday.

The spokesperson said the company and its works council had agreed on a severance incentive program aimed at administrative and development divisions. Manufacturing operations are excluded.

BMW employs approximately 160,000 people worldwide.

German carmakers have faced mounting pressure in recent years from the rise of Chinese competitors, which have rapidly established a dominant position in the electric vehicle market. Chinese manufacturers have also triggered a fierce price war in their domestic market, previously a lucrative source of export revenue for European brands, including BMW.

European carmakers have also had to fund their transition from gasoline-powered vehicles to electric models while dealing with the impact of US tariffs. Several manufacturers, including Volkswagen, Stellantis and Ford, have formed partnerships with Chinese rivals to support production and sales in Europe.

BMW’s planned cuts come after Milan Nedeljković, formerly the company’s head of production, took over as chief executive in May.