BMW Just Announced It’s Replacing Several Management Roles With AI
fliptop writes:
BMW announced Wednesday it planned to slash its management structure by 20% while expanding the use of artificial intelligence across its operations:
The luxury carmaker said it will reduce the number of divisions and associated management roles by 20% by mid-2027, with comparable reductions at lower organizational levels. BMW said AI will play a central role in making the company more efficient, speeding up decision-making and automating routine work across development, manufacturing, purchasing, sales and other operations.
The restructuring comes as BMW faces weak European demand, growing competition from Chinese automakers and U.S. tariffs, while its shares have fallen more than 30% over the past year, according to Reuters. The automaker is also seeking to restore its automotive operating margin after it fell to roughly 2.3% in its latest results.
"Consistent use of agentic AI applications across all areas of the company will be a game-changer for more agile and efficient development, leaner structures and faster decision-making," BMW finance chief Walter Mertl said.
[...] The company already uses AI throughout its factories for digital twins, quality inspections and autonomous transportation systems and plans to have digital AI agents perform increasingly challenging tasks autonomously.
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