BMW AG plans to reduce around 20% of its senior management positions by mid-2027 as the German automaker reorganises its corporate structure and expands the use of artificial intelligence across the business.
According to Bloomberg, BMW is preparing to consolidate business divisions and reduce management layers through an agreed buyout programme. The restructuring is intended to simplify decision-making, improve operational efficiency and support profitability.
A significant proportion of the affected positions are expected to be based in Munich, BMW’s headquarters.
Around 100 Senior Roles Could Be Affected
BMW currently has approximately 65 senior vice presidents reporting directly to the board, followed by around 400 senior management positions.
Based on the company’s reported plans, the restructuring could affect roughly 100 senior roles.
A company presentation cited by Bloomberg indicates that AI-supported processes are expected to contribute to a 20% reduction in senior vice-president positions, alongside wider changes to management structures.
The changes would reduce layers within the organisation and consolidate responsibilities across certain divisions.
Wider Workforce Restructuring in Germany
The management changes follow a broader workforce restructuring programme 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 eventually result in approximately 8,000 positions being eliminated, representing around 5% of BMW’s global workforce.
The voluntary nature of the programme means the eventual number of departures could differ from the figure reported.
BMW Expands Use of AI
Artificial intelligence is expected to become an important part of BMW’s organisational redesign.
Walter Mertl, BMW’s Chief Financial Officer, has said that consistent use of AI agents across the company could contribute to leaner organisational structures, faster decision-making and greater operational efficiency.
The company’s approach reflects a broader corporate trend in which AI is increasingly being applied beyond software development and manufacturing to areas such as administration, management, finance and other corporate functions.
AI Reshapes Corporate Management
The BMW restructuring comes amid wider changes in how major companies are assessing administrative and management roles.
Other large businesses have also announced workforce reductions affecting corporate and management functions as they seek to simplify structures and incorporate automation and AI into their operations.
For BMW, the planned changes combine organisational consolidation with increased adoption of AI-enabled processes. The company is expected to implement the senior-management restructuring by mid-2027.
The scale of the eventual workforce impact will depend on how the buyout programme and wider organisational changes are implemented.
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