BMW faces pressure after third profit warning in 3 years

BMW is facing mounting pressure after issuing its third profit warning in three years, prompting discussions with employee representatives about further efficiency measures. The German automaker said it is dealing with weakening demand in China and higher costs tied to the war in Iran, factors analysts link to the latest warning. In calls with BMW management, analysts suggested the company could increase localization of production in North America and China and may reduce jobs in Europe as part of broader cost-cutting. A spokesperson for BMW’s general works council said the company was working on viable solutions through dialogue while taking responsibility toward employees, without adding details. BMW’s shares fell to near a six-year low after the warning. New CEO Milan Nedeljkovic said BMW will step up structural cost-cutting and expects a one-off impact in the second half of 2026. The company expects to reduce the global workforce by up to 5% by end-2026, up to 7,700 positions, through natural attrition rather than layoffs.