BMW profit falls almost 35% as job cuts loom

BMW said second-quarter net profit fell almost 35% to €1.2 billion ($1.4 billion) as deliveries in China dropped, and the German premium carmaker said it was preparing job cuts to lower costs.

BMW said China was the main drag on the result, with vehicle deliveries there down 30.2% in the three months to the end of June. Deliveries rose in Europe and the United States.

Finance chief Walter Mertl said competition in the global auto market had intensified and that BMW would cut an unspecified number of jobs as part of efficiency measures.

A BMW source told AFP on Wednesday that the company would offer severance to almost half its German employees, with a view to cutting about 8,000 jobs by the end of 2027. BMW has about 85,000 permanent employees in Germany.

BMW CEO Milan Nedeljkovic said the company was preparing for Chinese competitors to expand in Europe, although their impact on BMW's continental sales had been limited so far.

BMW confirmed its adjusted annual guidance, saying it expects profit to fall by more than 10% in 2026. The company, which owns Mini and Rolls-Royce, issued a profit warning last month and said the margin at its core car business could be as low as 1% this year, citing weakness in China.

Other German carmakers have also moved to cut costs. Mercedes-Benz has a voluntary redundancy programme, while Volkswagen is weighing up to 100,000 job cuts across the group, including 50,000 already agreed.