BMW and its employee representatives are preparing for discussions after the German automaker issued a profit warning and announced plans to accelerate efficiency measures. According to Reuters, a spokesperson for the company’s general works council confirmed the upcoming talks on Friday.

The latest downgrade comes amid continued weakness in China, the world’s largest automotive market, as well as economic uncertainty linked to the conflict in Iran. Analysts participating in a recent management call said the measures could lead to further workforce reductions in Europe and faster localisation of production in North America and China.

“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 email to Reuters, without providing additional details.

Unlike rivals Volkswagen and Mercedes-Benz, BMW has not announced a major redundancy programme. However, the company’s workforce declined slightly in 2025, and analysts expect that trend to continue as efficiency measures are expanded. With just under 155,000 employees worldwide, some analysts estimate the workforce could shrink by as much as 5% by the end of 2026, potentially affecting up to 7,700 positions.

BMW has stressed that any workforce reduction would be achieved through natural attrition rather than compulsory layoffs. Shares fell sharply following the profit warning, reaching their lowest level in several years, while CEO Milan Nedeljković pledged to intensify structural cost-cutting measures. BMW expects a one-off effect from these measures during the second half of 2026.