BMW to cut 8,000 jobs in Germany in AI overhaul

In a move to enhance competitiveness and lower costs, automotive giant BMW plans to cut approximately 8,000 jobs in Germany, according to Reuters. The restructuring, announced at the company's Capital Market Day, aims to bolster BMW's position in a market facing weak demand, increased competition from Chinese automakers, and the impact of US tariffs.

CEO Milan Nedeljkovic emphasized that the job cuts are not merely a cost-saving measure, but a strategic shift to make BMW more agile and responsive to market changes. The restructuring plan, set to be implemented by mid-2027, includes a 20% reduction in management roles and a streamlined approach across various departments through the use of artificial intelligence.

BMW's restructuring also involves a revised product strategy, with a focus on low-margin variants and a 20% cut in management roles. The company plans to launch a compact electric model using Neue Klasse technology in Europe by 2028 and consider expanding its luxury Sports Activity Vehicle above the X7 in the US. In China, BMW intends to increase local production and development, aiming for 95% of vehicles sold to be locally manufactured and developed by 2030.

The restructuring plan also includes the launch of the first BMW Alpina model in 2027 and a 20% reduction in the number of vehicle variants. Despite the job cuts, BMW remains committed to its target automotive EBIT margin of 3% to 5% by 2028 and a long-term target of 8% to 10% by the early 2030s.