BMW plans to cut 8,000 management roles using AI by next year

BMW is taking a machete to its management layers, and AI is holding the handle. The German automaker announced plans to eliminate approximately 8,000 non-production roles globally, using artificial intelligence to absorb tasks previously handled by middle management, with a target completion date of mid-2027. The cuts represent about a 20% reduction in management positions and roughly 5% of BMW’s total workforce. Production workers are explicitly shielded from the restructuring, which BMW says will rely on voluntary severance, natural attrition, and non-renewal of contracts rather than forced layoffs. The math behind the restructuring BMW CEO Milan Nedeljkovic framed the move as a necessary response to a business environment that has become considerably less forgiving. The company has issued multiple profit warnings, and its automotive margins have slipped well below historical norms. The target is to push automotive margins back to the 3-5% range by 2028. For context, BMW historically operated in the 8-10% margin territory, a level Nedeljkovic aims to recapture by the early 2030s. The restructuring is expected to generate annual savings of approximately €1 billion starting in 2028...