Thousands of BMW employees could be affected by job cuts after the brand posted a disappointing second quarter, during which global profits dropped by 35 percent and pre-tax earnings came in at just $1.95 billion. As is also the case with fellow German carmaker the Volkswagen Group, BMW’s present difficulties are largely linked to a sharp decline in the Chinese market.

According to Automotive News, BMW’s tough Q2 was driven mainly by falling sales in China as domestic manufacturers intensified competition, along with weaker consumer confidence tied to the continuing Middle East conflict. Global sales fell 5 percent year on year, but in China alone the decline stood at a huge 30 percent. Alongside the drop in pre-tax earnings, BMW’s core business margin narrowed to 2.3 percent, down from 5.4 percent last year.

Although this result was better than analysts had forecast for Q2, it is still far from encouraging for the automaker. CEO Milan Nedeljkovic said he would examine the company’s business model in its entirety, adding that the results at the start of 2026 “are not satisfactory.”

Nedeljkovic specifically said he wants to make the company leaner, beginning with a review of both its internal combustion and electric model ranges. The company is also exploring other strategic partnerships in a bid to reduce costs and improve profitability.

“We are taking a critical look at how we work, including re-visiting core processes and structures that previously were considered untouchable,” Nedeljkovic said, according to Reuters.

Unfortunately, that approach is also likely to extend to the workforce itself. Reports have suggested that BMW is preparing to cut as many as 8,000 employees, although the reductions are said to come largely through a voluntary severance programme. BMW has confirmed that several thousand jobs will be cut before the end of 2027, but it has not commented on the exact number of employees who may be affected.

It is fair to say that German carmakers are going through a difficult period right now. The Volkswagen Group is preparing to lay off up to 100,000 people globally as it seeks to stabilise its own financial position. Even premium brands within the group, such as Porsche and Audi, are set to be affected — and workers are unhappy with how events are unfolding. On Wednesday, thousands of Audi employees came together to protest the company’s plan to shut its Neckarsulm plant.