BMW Plans To Layoff 20% of its Workforce, Says CEO

BMW is making AI a cornerstone of its turnaround strategy, embedding the technology across its operations to drive greater efficiency, sharpen decision-making and transform the way the automaker operates and manages its business. The luxury carmaker plans to cut management roles and divisions by 20% by 2027, as reported by daily mail The Times Of India. The logic behind the big decision is the agility artificial intelligence will give to the company and the need of lesser layer of managers.
BMW presented the strategy during its Capital Markets Day on September 30, with the event taking place at the company’s Gut Schwaerzenbach site in Bavaria as well as its Munich headquarters. The gathering also marked a key investor-facing moment for CEO Milan Nedeljkovic, who began leading the automaker in May after previously serving in several BMW roles, including as a production executive, as informed by TOI.
“We are improving our structures and cost base so we can meet the increasingly fierce competition that will define this industry in the coming years,” Nedeljkovic said, adding that the workforce restructuring programme is “an important lever for this.”