BMW plans management restructuring by 2027 and cost reduction through simplification

The Munich car manufacturer BMW wants to restructure parts of its middle to upper management. The company announced that the number of “areas and assigned management functions” should decrease by 20 percent by mid-2027. This initially concerns the relatively high level of department managers, but the effect will also be evident at lower management levels. There are no large numbers of job cuts.

The organization that we have in Munich is “simply too big,” said CEO Milan Nedeljković. You have to become smaller and quicker.

BMW announced a voluntary job cuts program in all areas except production in the summer. According to company sources, the number of employees worldwide is expected to fall by around 8,000 (read more here). Many jobs in administration and development will probably be eliminated in Germany.

In China in particular, BMW wants to focus even more on regionalization in order to produce more cheaply and to respond to the specific wishes of Chinese customers. The group is also looking into exporting from China to Southeast Asian markets in the future. Nedeljković also sees great potential in artificial intelligence: it is intended to identify where BMW can use parts from suppliers instead of developing its own solutions.

The company also wants to save costs by simplifying its offering. Among other things, the new 3 Series will no longer be available with a diesel engine. Read more about this here.