BMW Group is planning to reduce the number of its divisions and associated management roles by 20% by the middle of 2027 as the German automaker expands the use of artificial intelligence across its operations.
The company outlined the restructuring at its Capital Market Day 2026, positioning AI, organisational simplification and faster decision-making as part of a wider plan to improve efficiency and profitability. BMW said a comparable reduction is planned at organisational levels below management as it moves towards a leaner structure.
The automaker has already reached an agreement with its Works Council on adjustments to personnel structures. Alongside a voluntary severance programme, BMW plans to streamline processes across the organisation over the coming months.
AI will play a broader role in that transformation. BMW plans to systematically use the technology across core business processes, including vehicle development, purchasing, production, sales, marketing and aftersales.
In vehicle development, AI agents are expected to support technical requirements, testing and release processes, analyse complex information more quickly and automate routine work. AI-based systems are already being used across several stages of production, according to the company.
BMW Chairman of the Board of Management Milan Nedeljković said the company is working to improve its structures and cost base as competition across the automotive industry intensifies. The workforce restructuring programme is one of the measures being used to support that strategy.
The management changes form part of a broader restructuring programme rather than a standalone plan to replace individual managers with AI. BMW has described its objective as using AI to make processes more efficient while reducing organisational complexity and management layers.
The company is simultaneously reviewing its vehicle portfolio and regional production strategy. It plans to introduce a new model positioned above the BMW X7 and a fully electric entry-segment model focused on Europe. Some existing models, including the BMW 2 Series Active Tourer, will not receive successors.
In China, BMW intends to increase the number of locally tailored models and is considering exporting China-produced vehicles to Southeast Asian markets.
The changes come as BMW seeks to return the automotive segment's EBIT margin to its long-term target range of 8% to 10% by the beginning of the next decade. It has set an interim target of 3% to 5% for 2028.
For BMW, the AI push now extends beyond vehicle technology into the internal processes, organisational structures and workflows used to run the company.
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