BMW plans to reduce divisions and associated management roles by 20% by mid-2027, with comparable cuts at lower organizational levels, as it uses artificial intelligence to improve efficiency and profitability. The German automaker is targeting an automotive operating margin of 3% to 5% in 2028 and 8% to 10% by the start of the next decade, after its latest margin fell to 2.3% amid weak Chinese performance. The restructuring follows a July agreement with the Works Council and includes a voluntary severance program; an earlier report said about 8,000 jobs in Germany were expected to be affected. BMW will apply AI across development, purchasing, production, sales and aftersales, while also streamlining its lineup, expanding localized production in China and launching a compact electric model for Europe in 2028. Volkswagen and Ford have separately announced major European workforce reductions as carmakers confront rising competition, cost pressures and uneven electric-vehicle demand.