Key facts
- BMW is preparing to hold talks with employee representatives.
- The company issued a profit warning due to weakness in the Chinese car market and cost pressures.
- BMW plans to intensify structural cost-cutting and efficiency measures.
- The company expects a reduction in its global workforce of up to 5% by the end of 2026, occurring through natural attrition.
German premium carmaker BMW is preparing to engage in talks with employee representatives following a recent profit warning and a commitment to enhance efficiency measures. A spokesperson for the general works council indicated that the company is focused on developing viable solutions through dialogue and a sense of responsibility towards its employees.
Earlier this week, BMW issued a profit warning, attributing the revised outlook to persistent weakness in the Chinese car market, the world's largest, and increased cost pressures stemming from the conflict in the Middle East. The company also stated its intention to accelerate structural cost-cutting initiatives, anticipating a one-off financial impact in the latter half of 2026.
Unlike competitors such as Volkswagen and Mercedes-Benz, BMW has not yet announced extensive redundancy programs. However, the company's total workforce saw a slight decrease in 2025, a trend expected to continue this year. The company now expects a reduction in its global workforce of up to 5% by the end of 2026, which would amount to as many as 7,700 job losses, occurring through natural attrition rather than layoffs.