BMW in deep trouble: 7,500 jobs at risk, billion-euro changes loom

German automaker BMW is confronting serious difficulties, primarily driven by a substantial decline in sales within the vital Chinese market. This downturn has forced the company to issue a profit warning and initiate radical measures to boost efficiency and slash costs. Structural changes are underway, with one-time restructuring expenses anticipated to reach around 1 billion euros in the second half of 2026. BMW asserts that the positive impacts of these deep-seated transformations will become evident in the subsequent years. The company is avoiding the term "layoffs," opting instead for social programs such as partial retirement for older workers, early retirement, and natural attrition to reduce its workforce. This means positions vacated by retiring employees or those whose contracts expire will not be refilled. In Germany, employees benefit from additional protections under a permanent collective agreement that legally prevents sudden mass dismissals. The trend of workforce reduction began last year, with approximately 3,000 jobs cut, mainly in Germany and China, which are expected to bear the brunt of the upcoming reductions. The German auto industry is closely monitoring BMW's efforts to stabilize its business, not only in China but also in the U.S. market, as it strives to maintain its standing as a leading luxury car manufacturer globally.