BMW plans to eliminate approximately 8,000 non-production roles globally by mid-2027, using artificial intelligence (computer systems performing tasks associated with human reasoning) to take over work handled by middle management. The reduction amounts to about 20% of management positions and roughly 5% of the company’s total workforce, while production workers are excluded. BMW says the restructuring will rely on voluntary severance, natural attrition and contract non-renewals rather than forced layoffs. BMW CEO Milan Nedeljkovic described the plan as a response to multiple profit warnings and automotive margins that have fallen below historical levels. The company aims to restore automotive margins to 3-5% by 2028, compared with its historical 8-10% range, and to move back toward that higher level in the early 2030s. The restructuring is expected to produce approximately €1 billion in annual savings from 2028. A voluntary redundancy program announced in July 2026 covers around 40,000 desk-based employees in Germany. BMW is responding to softer demand in China and growing competition from Chinese electric vehicle manufacturers, while arguing that AI can automate data aggregation, reporting, workflow coordination and routine decisions. The company expects this to flatten its hierarchy, accelerate decisions and redirect resources toward human creativity and engineering expertise. Its reliance on voluntary departures and attrition reflects Germany’s works councils and employment protections, but could slow the pace of workforce reductions while limiting the risk of prolonged labor disputes.