German automaker BMW announced plans to eliminate approximately 8,000 non-production management roles by mid-2027, representing a 20% reduction in management positions and roughly 5% of its total workforce. Artificial intelligence will take over tasks traditionally handled by middle management, including data aggregation, report generation, workflow coordination, and routine decision-making. The restructuring is expected to generate annual savings of approximately one billion euros starting in 2028, as BMW aims to restore automotive margins to the 3-5% range by 2028, down from its historical 8-10%. The company is relying on voluntary severance, natural attrition, and non-renewal of contracts to avoid forced layoffs, navigating Germany strict employment protections.
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