BMW to cut a fifth of management, says AI will speed decisions
BMW's restructuring centers on management cuts and AI-driven efficiency; whether it closes the margin gap remains to be seen.
BMW announced a restructuring plan on September 30, cutting one fifth of its departments and corresponding management positions by mid-2027, with around 8,000 jobs in Germany affected.
According to Reuters, new CEO Milan Nedeljković said AI will become an important tool for improving organizational efficiency and speeding up decision-making, insisting "this is not a cost-cutting program."
The backdrop: BMW's third profit warning in just over three years on weak China performance. Its core automotive margin stands at 2.3% against a 3%-5% target for 2028, and the stock has lost more than a third of its value over the past year.