BMW Will Cut 20% of Its Management Staff Due to the Implementation of Artificial Intelligence

German automaker BMW plans to make more extensive use of artificial intelligence to reduce the number of management positions by 20%. These changes are expected to take place by the middle of next year.

According to the company’s presentation, the technology will help streamline management structures and eliminate approximately 20% of senior vice president positions.

The cuts will affect a number of divisions and management positions all the way down to lower levels, as the company seeks to become more flexible through the effective use of artificial intelligence.

According to sources familiar with the Munich-based automaker’s business structure, the company employs approximately 65 senior vice presidents and another 400 or so lower-level managers, so the cuts will affect about 100 top positions.

According to CEO Milan Nedelkovic, the changes will primarily affect the headquarters in Munich and will extend to lower levels of management.

Earlier in July, BMW also approved a plan to cut about 8,000 administrative positions in Germany, representing about 5% of its global workforce.

Chief Financial Officer Walter Mertl emphasized that the implementation of AI-powered applications will be a turning point in ensuring flexibility and faster decision-making.

As a result, BMW aims to restore its long-term margin to 8–10% by the start of the next decade, while revamping its product lineup, optimizing production, and withdrawing from the Paris Motor Show.

This was reported with reference to data from Bloomberg.

BMW has unveiled the i3 M60 electric sedan with two motors — Motor1.

BMW will unveil the new generation of the 3 Series on September 29 — Motor1.

BMW is recalling popular models due to a fire risk after the engine is turned off.