German luxury carmaker BMW AG plans to eliminate around 20 per cent of its senior management positions by mid-2027 as it streamlines its organisational structure and expands the use of artificial intelligence across the business.
According to Bloomberg, the company will consolidate divisions and management layers under an agreed buyout programme as it seeks to simplify decision-making, improve efficiency and strengthen profitability. Most of the affected positions are expected to be in Munich, where BMW is headquartered.
BMW currently has about 65 senior vice presidents reporting directly to the board, followed by around 400 senior management positions. The planned restructuring could, therefore, affect roughly 100 senior roles. A company presentation cited by Bloomberg said AI-enabled processes would support a 20 per cent reduction in senior vice-president positions alongside broader consolidation of management structures.
The leadership changes follow a wider workforce restructuring in Germany. In July, BMW agreed to reduce white-collar employment through a voluntary departure programme. People familiar with the matter cited by Bloomberg said the initiative could result in around 8,000 positions being eliminated, equivalent to about 5 per cent of the company’s global workforce.
Artificial intelligence is expected to play a larger role in BMW’s efforts to redesign its organisational structure. Walter Mertl, CFO, said the consistent use of AI agents across the company would help create leaner structures, speed up decision-making and improve operational efficiency.
The restructuring reflects a broader shift among large companies towards using AI not only in technology and manufacturing but also across corporate and management functions. Bloomberg has also reported workforce reductions affecting management and administrative roles at companies including United Parcel Service and Deutsche Lufthansa.
