BMW announced a major corporate restructuring aimed at reducing its management structure by 20% by mid-2027. CEO Milan Nedeljković presented the plan during the company's Capital Market Day, highlighting the use of artificial intelligence to streamline operations, accelerate decision-making, and improve profitability.
The reduction in management roles is part of a broader workforce adjustment. Earlier this year, the company reached an agreement to eliminate several thousand administrative and development positions through voluntary departures, potentially affecting around 8,000 jobs. Production workers are excluded from these cuts.
The automaker intends to integrate AI across its value chain, including development and internal processes. BMW already utilizes generative AI tools like the AIconic Agent for procurement tasks. These measures are designed to flatten the organizational structure and reduce management layers as the company faces market pressures.
BMW expects its automotive operating margin to reach 1% to 3% in 2026, with a target of 3% to 5% by 2028 and 8% to 10% by the early 2030s. The company is also investing €2 billion in German vehicle and battery production, while planning to launch a lower-priced electric model and a new luxury SUV.
