BMW is preparing workforce discussions and accelerating efficiency measures after lowering its profit outlook, with around 7,700 positions expected to be affected through natural attrition by the end of the year.

BMW is set to accelerate cost-cutting measures and workforce adjustments after weakening demand in China and rising geopolitical costs forced the German carmaker to lower its profitability forecast.

The company is targeting a global workforce adjustment of around 5%, with approximately 7,700 positions expected to be reduced through retirements and voluntary resignations rather than large-scale layoffs. The move comes as BMW faces mounting pressure from softer vehicle sales in China, one of its most important markets, and increased operating costs linked to ongoing tensions in the Middle East.

According to Reuters, BMW's management and employee representatives are preparing to begin discussions on efficiency measures as the company seeks to protect competitiveness amid a challenging operating environment.

BMW recently revised its automotive division profit margin guidance to approximately 1% to 3%, significantly lower than its previous forecast of 4% to 6%.

The downgrade reflects growing pressure on the company's financial performance as global market conditions become more volatile.

According to Reuters, the weaker outlook has been driven by:

Investor concerns have also weighed on the company's stock performance.

Reuters reported that BMW shares have fallen to their lowest level in nearly six years on the Frankfurt Stock Exchange following the revised guidance.

As part of its response, BMW is preparing discussions with employee representatives and its works council to identify potential efficiency improvements.

The company has indicated that workforce considerations will remain part of the conversation as it seeks to reduce costs without resorting to large-scale compulsory redundancies.

According to Reuters, approximately 7,700 positions are expected to be removed through natural attrition, including:

The approach allows BMW to reduce headcount while avoiding broader restructuring measures that could result in significant layoffs.

The planned workforce adjustment represents around 5% of BMW's global workforce.

BMW Chief Executive Officer Milan Nedeljković said the company would accelerate structural cost-cutting initiatives to maintain competitiveness in a rapidly changing automotive market.

The measures form part of a broader effort to strengthen operational efficiency as manufacturers contend with slowing demand, economic uncertainty and rising production costs.