BMW under pressure: the German manufacturer is preparing discussions with its employees after a new financial warning

BMW is preparing to enter into discussions with employee representatives after issuing a profit warning and announcing an acceleration of its cost-cutting measures. This decision comes at a difficult time for the German automaker, which is facing a slowdown in several key markets and increasing geopolitical uncertainties.

The group issued its third profit warning in three years this week. According to the company, this deterioration in the outlook is due in particular to the persistent weakness of the Chinese market, the world's largest automotive market, as well as the economic consequences of the war involving Iran, which is increasing pressure on production costs.

Following discussions between management and employee representatives, several analysts estimated that BMW may be forced to reduce its workforce in Europe and accelerate the localization of its production in North America and China in order to better control its costs and adapt to market developments.

The works council indicated that it is currently prioritizing dialogue with management. In a statement sent to Reuters, a spokesperson affirmed that the discussions aim to find viable solutions while acknowledging the company's responsibilities towards its employees. No further details were provided regarding the measures currently under consideration.

Unlike its German competitors, notably Mercedes-Benz and Volkswagen, BMW has not yet announced a large-scale job-cutting plan. Nevertheless, the group's workforce has already decreased slightly by 2025, a trend that several industry observers expect to continue this year.

BMW's new CEO, Milan Nedeljkovic, has pledged to accelerate structural cost reductions to maintain the automaker's competitiveness. This strategy could translate into significant measures as early as the second half of 2026.

Faced with increased competition in the global automotive market and difficulties in China, BMW is entering a delicate period. The upcoming negotiations with employee representatives will be closely watched by both employees and investors, who are awaiting clarification on the extent of the changes to come.