BMW's China Problem May Put 7,700 Jobs Worlwide on the Line
Automakers Continue Tightening Their Belts
The car industry is feeling the pinch. Demand is cooling off, costs are climbing, and the competition is fiercer than ever. In the past year, we've seen big names slash jobs to stay afloat and brace for whatever comes next. Now, BMW is jumping on the bandwagon.
BMW isn't rolling out a massive layoff plan like some of its rivals, but after yet another profit warning, the company says it's tightening its belt even more. With automakers everywhere rethinking how they build cars, spend money, and staff up, BMW is clearly feeling the heat.
Analysts say global brands that once banked on China as their golden ticket are now sweating. With rivals piling in and sales losing steam, automakers are desperate to trim the fat and keep profits from slipping away.
BMW Braces for Workforce Reduction
According to Reuters, BMW and its employee reps are gearing up for some tough talks after the company warned investors that 2026 is shaping up to be a rough year for profits.
BMW just cut its financial forecast again, blaming a shaky Chinese market and extra costs thanks to trouble in the Middle East. This is the third year in a row BMW has sounded the alarm about China. New CEO Milan Nedeljkovic says he's speeding up efforts to make BMW leaner, though the company admits these changes will sting in the back half of 2026.
Reuters says BMW expects to shrink its global workforce by up to 5% by the end of next year. With nearly 155,000 people on the payroll, that's about 7,700 jobs on the line.
A BMW spokesperson told the publication that the reductions are expected to happen through natural attrition rather than direct layoffs. Meanwhile, the company's works council said it was working toward "viable solutions" through dialogue with management and with consideration for employees.
Analysts think BMW might speed up plans to build more cars closer to home in places like North America and China, all while hunting for more ways to save cash.
BMW Isn't Alone
BMW isn't alone. This week, EV startup Rivian also announced more job cuts as it tries to rein in spending and finally turn a profit. The company has been shedding workers for years in its quest to stay afloat. Volkswagen is making big moves too, with plans that could see about 28,000 jobs disappear as it scrambles to keep up in a fast-changing market.
Automakers everywhere are facing the same headaches: slower growth, tougher rivals, higher bills, and the race to invest in tomorrow's tech. BMW's job cuts show that even the big names aren't safe, and we wouldn't be surprised if more shakeups are on the way.
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This story was originally published June 20, 2026 at 7:15 AM.