BMW Cost Cuts Could Impact 7,700 Jobs

German luxury automaker BMW is preparing for discussions with employee representatives as it moves to accelerate efficiency and cost-cutting measures following its third profit warning in three years.

The company cited weakening demand in China, increasing competitive pressure, and rising operational costs as key factors behind its revised financial outlook. BMW’s new CEO, Milan Nedeljkovic, has announced plans to intensify structural cost-reduction initiatives to improve profitability and operational efficiency.

According to company estimates, BMW’s global workforce could shrink by up to 5% by the end of 2026. With nearly 155,000 employees worldwide, this could impact approximately 7,700 positions. However, BMW has clarified that the reduction is expected to occur primarily through natural attrition, retirements, and unfilled vacancies rather than large-scale layoffs.

The automaker has already begun preparing discussions with employee representatives to identify sustainable solutions while balancing business needs and employee interests. Industry analysts believe the company may also accelerate efforts to localize production in key markets such as North America and China.

The announcement comes amid broader challenges facing the global automotive industry, including slowing growth in China, increasing competition from domestic electric vehicle manufacturers, and ongoing economic uncertainty. BMW’s shares fell sharply following the profit warning, reaching their lowest level in nearly six years.

As the company navigates these headwinds, its next steps will be closely watched by employees, investors, and industry observers alike.

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