BMW Wants AI to Drive Efficiency Amid Staffing Reduction

BMW is exploring the use of artificial intelligence (AI) to boost efficiency as it prepares to implement extensive workforce reductions, according to a report by The Wall Street Journal (WSJ) on September 30. The German automaker aims to cut costs and accelerate development through AI, as detailed at an investor event. The WSJ disclosed that BMW anticipates AI will enhance agility and effectiveness, potentially reducing management layers and restructuring business units.

The company plans to cut around 20% of divisions and management roles over the coming months, with a similar reduction at lower organizational levels. BMW has already struck agreements with labor representatives for a significant staff restructuring, which may impact up to 8,000 white-collar workers in Germany, as per WSJ sources.

The German carmaker, which had approximately 155,000 employees at the end of 2025, is streamlining structures and costs to compete in an increasingly challenging industry. CEO Milan Nedeljkovic emphasized the importance of workforce restructuring as a key factor in the company's strategy. As automakers worldwide face heightened competition, dwindling markets in China, rising energy costs, and U.S. tariffs, BMW highlighted the need for increased speed and efficiency across the entire organization.

The report mentioned that BMW currently utilizes over 600 AI applications across various business functions, such as crash simulations conducted by engineers without physical prototypes and procurement teams analyzing supplier contracts. This trend reflects broader efforts among European car companies to address challenges in order-to-delivery workflows, inventory management, and manual tracking.

BMW's AI initiatives are part of a strategic response to industry pressures, aiming to improve earnings before the end of the decade.