Thought Leadership
BMW plans to eliminate around 20 percent of its top management positions by mid-2027, explicitly citing artificial intelligence as one of the tools enabling the cuts.
When companies announce job cuts, they typically point to efficiency, transformation or changing market conditions. Artificial intelligence, however, rarely appears as a direct reason, as few companies want to fuel already widespread concerns about AI-driven job losses. BMW is taking a different approach. The automaker is explicitly positioning the technology as a tool to reduce the size of its senior management. Bloomberg is among the outlets reporting on the plans.
The cuts will specifically affect Senior Vice Presidents, the management level directly below the executive board. According to a strategy document, their number is expected to fall by 20 percent by mid-2027. BMW plans to achieve this by consolidating departments, making some management positions redundant. The company said the restructuring will also affect lower management levels.
Cuts to be implemented through existing severance program
According to a person familiar with BMW’s corporate structure, the company has around 65 top-level managers and a further management tier of approximately 400 senior executives. Overall, roughly 100 positions are expected to be eliminated. According to CEO Milan Nedeljkovic, most of those affected are based at BMW’s headquarters in Munich. The cuts will be implemented through an existing severance program.
Chief Financial Officer Walter Mertl is counting on agentic AI applications to be deployed across the company. He expects the technology to shorten decision-making processes, streamline organizational structures and accelerate development. BMW did not disclose which systems will take over specific management tasks.
(Editorial Team)
