BMW warns on profits as it counts cost of plan for 8,000 job cuts
Summary
BMW cut its 2025 profit-margin outlook to between -0.5% and 0.5%, citing restructuring costs that include plans to eliminate 8,000 jobs in Germany. The carmaker also reported lower third-quarter earnings and revenue as sales in China fell, amid strong competition from Chinese manufacturers.Key Facts
- BMW issued its second profit warning in a year.
- The company lowered its expected profit margin for the year from 4–6% to between -0.5% and 0.5%.
- BMW plans to cut 8,000 jobs in Germany as part of its restructuring.
- Third-quarter pre-tax earnings fell 11% to €2.1 billion.
- Third-quarter revenue fell 6% to €30.4 billion.
- BMW sales in China fell 22% in the first nine months of the year.
- BMW's core automotive operating margin was 3.4%, down from 5.2% a year earlier.
- BMW said restructuring charges include write-offs of older vehicle and technology generations as it launches new electric vehicles.
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