Business · Companies · 8 hrs ago
BMW cuts profit outlook as job-cut costs rise
BMW has lowered its forecast for its car business for the current year, saying it expects to earn less than previously expected.
The company now expects an operating margin of between -0.5% and 0.5%, down from its earlier forecast of 1% to 3%.
BMW announced plans over the summer to cut thousands of jobs in Germany, and an early-October severance programme was so successful it closed in less than three weeks.
The company expects many of the departures and their costs to affect the fourth quarter.
BMW had previously estimated total job-cut programme costs of about €1 billion.
Investors reacted negatively, with BMW shares falling 3% in after-hours trading, and the company said it would give details when it releases third-quarter results on Wednesday morning.
BMW lowered its forecast for the current year, expecting to earn less in its core automotive business.
The company now expects an operating margin in its automotive business of between minus 0.5 and plus 0.5 percent.
The previous forecast was between 1 and 3 percent.
Costs from a job-cut programme are among the reasons for the change, after an employee buyout programme proved more popular than expected.
BMW’s shares fell 3 percent in an initial after-hours reaction on Tuesday.
- Who
- BMW.
- What
- It cut its forecast for the current year and expects a lower operating margin in its automotive business.
- When
- The forecast change was reported on November 3, 2026.
- Where
- The job cuts are in Germany.
- Why
- Costs from the job-cut programme are among the reasons. The employee buyout programme was more successful than expected.
This story does not have two clearly opposing sides.
BMW announced plans to cut thousands of jobs in Germany.
BMW started an employee buyout programme.
BMW closed the programme after it proved unexpectedly successful.
BMW lowered its forecast for the current year.
- New automotive operating-margin forecast
- Minus 0.5 to plus 0.5 percent
- Previous automotive operating-margin forecast
- 1 to 3 percent
- Planned job cuts
- Thousands of jobs in Germany
- Estimated total job-cut programme costs
- Around 1 billion euros
- BMW share reaction
- Down 3 percent in an initial after-hours reaction on Tuesday