BMW prepares for talks with staff in wake of profit warning
BMW Faces Profit Warning and Plans for Efficiency Measures
By Rachel More
Background on the Profit Warning
BERLIN, June 19 (Reuters) - BMW and staff representatives are preparing for talks after the German premium carmaker issued a profit warning this week and said it would accelerate efficiency measures, a spokesperson for its general works council said on Friday.
Factors Behind the Warning
It was BMW's third profit warning in as many years attributed at least in part to weakness in China, which is the world's biggest car market. The company also pointed to cost pressures resulting from the Iran war.
Potential Impact on Jobs and Production
Analyst Reactions and Speculation
Analysts said after a call with BMW management to explain the gloomier outlook that it could axe jobs in Europe and speed up efforts to localise production in North America and China.
Company and Works Council Statements
"We are initially working on viable solutions, through dialogue and with a sense of responsibility toward our employees," the works council spokesperson said in an emailed response to Reuters, without giving further details.
Comparison with Other German Carmakers
Unlike Germany's Volkswagen and Mercedes-Benz, BMW has not yet announced sweeping redundancy programmes, although its total workforce did fall slightly in 2025, a trend expected to continue this year.
Financial and Workforce Outlook
Share Price and Cost-Cutting Measures
BMW's shares plunged to a near six-year low following the announcement, in which new CEO Milan Nedeljkovic vowed to intensify structural cost-cutting, flagging a one-off effect as a result in the second half of 2026.
Expected Workforce Reductions
It currently expects a reduction in its global workforce of up to 5% by the end of 2026. With just under 155,000 employees, this would amount to as many as 7,700 job losses.
Approach to Job Reductions
A company spokesperson said these reductions would continue to occur through natural attrition rather than layoffs.
(Reporting by Rachel More, editing by Thomas Seythal and Alexander Smith)
