BMW to cut management roles and divisions by 20% by 2027

BMW said it plans to reduce management roles and related divisions by 20% by mid-2027, as it expands the use of artificial intelligence to simplify operations and improve efficiency. The company announced the restructuring at its Capital Market Day on Wednesday, linking broader AI adoption to leaner organizational structures and faster decision-making. The planned reduction will extend beyond senior executives, with comparable cuts expected at lower organizational levels, BMW said. The company did not provide a total number of management positions affected or explain how much of the change would result directly from AI-related task changes. It has described AI as part of a broader effort to streamline its structure, not as the sole cause of the reductions. BMW’s announcement is distinct from a separate workforce-reduction agreement reached in July. Reports describe that program as involving about 8,000 white-collar positions in Germany, but the sources do not establish how those positions overlap with the management restructuring.