BMW Group plans to cut divisions and management roles by 20 percent by mid-2027, linking a leaner organisation to wider use of artificial intelligence and a reduced vehicle range.
The restructuring, outlined on September 30 and confirmed through BMW's own statement, brings together changes to staffing, development processes and model planning in a push to improve profitability. A comparable reduction is also planned for organisational levels below management, extending the changes beyond senior executives.
AI expansion reaches across the business
BMW intends to expand AI use across development, purchasing, production and aftersales to make those operations more efficient.
CFO Walter Mertl called agentic AI, software that can carry out tasks with minimal human input, a game-changer for more agile and efficient development, more efficient structures and faster decision-making.
The company already employs AI in manufacturing through standardised IT and data models. Its ambition is for those tools eventually to provide end-to-end support across vehicle development.
The planned management reduction is separate from a voluntary redundancy programme already underway in Germany. Reuters reports that programme could affect roughly 8,000 positions. BMW reached an agreement with its Works Council in July covering job losses connected to the AI transition, before the broader restructuring announcement.
A smaller range, with resources for new launches
The changes will also shape the cars BMW offers. The company is reviewing its model variants and plans to reduce their number, with the 2 Series Active Tourer among the models affected.
The compact MPV-style vehicle will not receive a successor, although its current generation remains in production. BMW has not identified which other models or specific trims will be cut.
Reducing variants means fewer development paths for engineering teams to manage, freeing capacity for the AI-driven processes described by Mertl.
At the same time, BMW is directing resources towards new launches. These include a compact entry-level electric vehicle aimed at Europe, planned for 2028 as part of the Neue Klasse rollout.
That schedule would bring the brand's cheapest EV to market roughly two years after the restructuring is due to finish, pairing a smaller organisation and model range with investment in a new electric offering.