- BMW will cut about 20% of senior management roles by mid-2027 using AI-driven restructuring
- The company aims to protect earnings amid weak China demand and Middle East conflict impacts
- BMW plans to reduce roughly 100 high-level jobs out of 465 senior posts, mostly in Munich
BMW will lean on artificial intelligence to thin out its upper management, with about 20% of senior roles due to go by mid-2027, Bloomberg reported.
The Munich-based carmaker is trying to protect its earnings from weak demand in China and the fallout from the Middle East conflict.
Who Is Affected?
Bloomberg said BMW has around 65 senior vice presidents who report directly to the board, and about 400 senior posts below them.
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A 20% reduction could therefore remove roughly 100 high-level jobs, by the agency's reckoning. The company told Wednesday's briefing that divisions and management layers will be merged under an agreed buyout programme.
CEO Milan Nedeljkovic said most of the affected posts sit in Munich, according to the report.
The reductions add to a plan agreed in July to trim white-collar staff in Germany. People familiar with that plan told Bloomberg it could cost about 8,000 jobs, or around 5% of the global workforce, through voluntary exits.
The Earnings Squeeze
BMW warned in June that its automotive profit margin could slip to as little as 1% this year. Finance chief Walter Mertl said deploying AI agents across the group should produce leaner structures and faster decisions.
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The company aims to get back to its long-term margin range of 8% to 10% by the start of the next decade, with 3% to 5% expected in 2028.
Others Doing The Same
BMW is not alone in cutting managers. United Parcel Service has also removed 12,000 managerial roles, and Lufthansa plans to drop 4,000 administrative jobs.
New Products, Fewer Old Ones
Nedeljkovic, who took over as CEO in May, is also redrawing the model range. BMW wants to tailor vehicles to local tastes, especially in China, where BYD and other domestic brands have gained ground.
It plans models positioned between BMW and Rolls-Royce, a new entry-level electric car for Europe and a high-end SUV for the US. The 2-Series Active Tourer and the diesel 3-Series will be discontinued.
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