BMW holds preliminary talks with employees ahead of potential layoffs. Wave of restructuring in European auto sector

German automaker BMW has entered preliminary discussions with employee representatives as it revises down profit expectations and intensifies efficiency measures. While the company has not announced direct layoffs, this social dialogue signals potential personnel adjustments within the broader context of significant structural pressures on the entire European automotive sector.

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BMW confirmed, through a spokesperson for the works council, that discussions with employee representatives will follow, after the company revised down profit outlooks and announced intensified efficiency measures.

From Volkswagen to major industrial suppliers, the auto industry is grappling with shrinking margins, the costly transition to electric mobility, and increasingly aggressive competition from Chinese manufacturers. BMW's move into social dialogue precedes potential workforce adjustments, a common preparatory step in German industrial restructuring. These discussions typically precede decisions on internal reorganizations, cost-cutting, or gradual workforce reductions.

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Statements sent to Reuters indicate that, at this stage, the focus is on identifying 'viable' solutions through social dialogue, with the responsible involvement of unions and internal employee representation structures.

BMW recently projected a significant decline in pre-tax profit, a revision from earlier expectations of only a moderate decrease. This adjustment stems from deteriorating market conditions, particularly in China where demand for premium vehicles has become more volatile, and from rising costs associated with the shift to electric mobility. The company also indicated a goal to reduce its global workforce by up to 5% by the end of 2026. This reduction, potentially around 7,700 positions, is expected to be achieved mainly through natural attrition, retirements, and selective replacement of vacant roles, rather than mass layoffs.

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BMW recently announced that it expects a significant decline in pre-tax profit, after a period in which estimates indicated only a moderate decrease.