BMW Group is preparing to enter discussions with employee representatives as the German automaker contends with a fresh profit warning, weakening China sales and rising costs tied to the Iran war.
According to a Reuters report, the German carmaker and its general works council are expected to start talks in the coming weeks.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The works council acknowledged the challenges facing the company but did not outline specific measures.
“We are initially working on viable solutions, through dialogue and with a sense of responsibility toward our employees”, a spokesperson told Reuters.
BMW has been reducing its workforce through natural attrition, with employee numbers declining slightly in 2025.
The company expects that trend to continue this year.
By the end of 2026, BMW is targeting a reduction of up to 5% of its global workforce.
Based on its current headcount of just under 155,000 employees, this could amount to around 7,700 fewer positions worldwide, the report added.
The planned workforce reduction is part of wider efforts to improve efficiency as the company faces growing pressure from market conditions.
BMW’s approach differs from that of German rivals Volkswagen and Mercedes-Benz, which have announced larger-scale job-cutting programmes, Reuters reported.
Earlier this month, BMW lowered its financial outlook for 2026, citing a worsening passenger vehicle market in China and the broader economic impact of the conflict in the Middle East.
The company now expects its automotive segment EBIT margin to be between 1% and 3%, compared with previous guidance of 4% to 6%.
BMW said group profit before tax is expected to decline significantly from the previous year, a sharper drop than the moderate decrease previously anticipated.
The company said market conditions in China deteriorated during the second quarter, particularly in the non-electric vehicle segment, increasing competitive pressure both in China and across the Asia-Pacific region.
