BMW will cut 20% of managers and introduce AI

The German concern BMW intends to radically rebuild the organizational structure and reduce a fifth of the management links. This is reported by DW (recognized as a foreign media agent in Russia and an undesirable organization). By mid-2027, the company plans to remove 20% of its divisions and related management positions.

The reform will primarily affect top management, but the changes will be felt by line managers. BMW stresses that eliminating control levels does not amount to mass layoffs. However, in parallel, the company operates a program of voluntary departure of employees.

Production will not affect personnel reductions. In all other units, the staff will be reduced by about 8 thousand people, which is about 5% of the total staff. The main blow will fall on the administrative unit and research and development departments in Germany.

The key tool of the new strategy will be artificial intelligence. The technology is planned to be implemented in all business processes to accelerate decision-making and increase efficiency. The flexible structure should help the auto giant adapt to regional markets faster.

The reason for the transformation was the deterioration of the position of the German automotive industry. The company faces weak demand in Europe, aggressive expansion by Chinese manufacturers, U.S. tariffs and an electric vehicle boom. BMW expects to increase the profitability of its core business and reduce model variations.

Particular attention will be paid to the localization of products. In China, by 2030, the share of cars adapted to local preferences should reach 95%. For the European market in 2028 is planned to release a new affordable electric model.

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