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BMW to Slash 20% of Management Jobs by Mid-2027, AI to Drive Leaner Operations
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CNBC TV18•01-10-2026, 12:18
BMW to Slash 20% of Management Jobs by Mid-2027, AI to Drive Leaner Operations
- •BMW AG plans to cut 20% of its divisions and associated management roles by mid-2027, leveraging artificial intelligence for leaner structures.
- •The reduction targets senior vice presidents and organizational levels below, potentially eliminating around 100 high-level positions.
- •Most of the affected positions are located in Munich, with the goal of streamlining leadership structures.
- •BMW aims for increased agility through efficient AI use across all departments, employing AI agents in development from requirements to testing.
- •The management cuts are part of a wider savings drive, including a voluntary severance program targeting 8,000 white-collar positions in Germany, and aim to improve automotive EBIT margin to 8-10% by the next decade.
Key Questions Answered
BMW plans to cut 20% of its divisions and associated management roles by the middle of next year, aiming to use artificial intelligence to run leaner structures and streamline leadership.
BMW plans to deploy agentic AI applications across all areas of the company, including using AI agents in development from technical requirements to testing and release, to drive leaner structures and faster decision-making.
BMW agreed with its Works Council on a voluntary severance program targeting about 8,000 white-collar positions in Germany, which accounts for roughly 5% of its global workforce.
