BMW announces negotiations with employee representatives after a profit warning and efficiency measures. The weakness of the Chinese market and rising costs are affecting the company.
Lara Maior
Economy
SirichaiKeng / Shutterstock.com
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BMW and employee representatives are preparing for negotiations, after the German car manufacturer issued a profit warning and announced streamlining measures. This is the third profit warning in three years, with the weakness of the Chinese market as the main factor. The company is facing cost pressures due to conflicts in the Middle East and rising energy prices. Analysts suggest that BMW could reduce the number of employees in Europe and relocate production to North America and China. Although it has not announced massive layoffs, BMW estimates a reduction of the global workforce by up to 5% by 2026, mainly through natural departures. BMW's shares have hit a historic low, and challenges in China and competition from electric vehicle manufacturers are affecting the European automotive industry.
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