German luxury carmaker BMW is preparing discussions with employee representatives after issuing its latest profit warning and announcing plans to accelerate efficiency measures. The company cited continued weakness in the Chinese market and rising costs linked to the conflict involving Iran as key reasons for the weaker outlook.

Industry analysts believe BMW could consider reducing jobs in Europe while increasing efforts to localise production in North America and China. Although the company has not announced large-scale layoffs like some of its competitors, its workforce declined slightly in 2025 and is expected to shrink further this year.

BMW’s shares fell to their lowest level in nearly six years following the announcement. The automaker expects its global workforce to decrease by up to 5% by the end of 2026, potentially affecting around 7,700 positions. However, the company said the reduction will be achieved through natural attrition rather than compulsory job cuts.

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