BMW Operating Profit Drops by Almost 40 Per Cent in First Half of 2026

Berlin (ANTARA) - BMW’s operating profit plummeted by almost 40 per cent in the first half (H1) of this year, the German premium car manufacturer announced on Thursday (30/7). This announcement follows BMW’s disclosure of plans to cut 8,000 jobs worldwide as part of an effort to tighten cost efficiencies amidst increasing pressure from tariffs, stricter regulations, and intensifying competition.

BMW’s operating profit fell 37.4 per cent year-on-year to 3.64 billion euros during the first six months of 2026. Meanwhile, net profit shrank by 28.5 per cent to 2.87 billion euros. Vehicle deliveries also declined by 4.2 per cent to 1.16 million units. The company expects total vehicle deliveries for the full year to be slightly lower than last year.

BMW CEO Milan Nedeljkovic stated that higher tariffs, trade barriers, increasingly stringent regulations in Europe, and the ongoing conflict in the Middle East have been the primary challenges facing the company over the past year. Tariffs alone reduced the group’s automotive profit margin, or earnings before interest and taxes (EBIT) margin, by 1.25 percentage points in the second quarter. This margin dropped to 2.3 per cent from 5.4 per cent last year.

Nedeljkovic noted that BMW is accelerating cost-efficiency measures by streamlining the organisation and improving efficiency to maintain the company’s long-term competitiveness. He added that BMW has reached an agreement with worker representatives regarding the workforce restructuring plan, which includes reducing the number of employees in non-production roles in Germany. The automotive giant will cut approximately 8,000 jobs worldwide between October this year and the end of 2027, with more than half of the reductions expected to take place in Germany. As of the end of 2025, BMW employs approximately 154,500 people globally, including more than 80,000 in Germany.