BMW to cut 20% of management roles through AI integration

BMW Group has announced a major restructuring plan aimed at increasing efficiency through the integration of artificial intelligence and a reduction in management personnel. The company intends to expand AI use across development, purchasing, production, and aftersales to foster more agile decision-making and streamlined structures.

As part of this initiative, BMW plans to cut management roles and certain organizational levels by approximately 20 percent, with a target completion date of mid-2027. This follows a voluntary redundancy program in Germany that could impact roughly 8,000 positions. CFO Walter Mertl described agentic AI as a “game-changer” for achieving more efficient development and faster decision-making.

Financially, the automaker is targeting an EBIT margin of 8 to 10 percent in its automotive division by the start of the next decade, with a milestone of 3 to 5 percent set for 2028. Analysts remain divided on the stock's outlook: Deutsche Bank Research maintained a “buy” rating but lowered its price target to 71 euros, JPMorgan maintained an “overweight” rating with an 82-euro target, and UBS issued a “neutral” rating with a 70-euro target.