Frankfurt (Germany), 30 Sept. (LaPresse) – BMW intends to reduce the number of divisions and their associated management functions by 20 per cent by mid-2027, as part of a simplification of the group’s structure to speed up decision-making processes. The German car manufacturer has announced this. The reorganisation will initially affect the highest levels of management, but will also have an impact on lower management levels. However, this measure alone will not result in large-scale job losses. BMW had already announced a voluntary redundancy programme in the summer across all sectors except production. According to company sources cited by the *Frankfurter Allgemeine Zeitung*, the group aims to reduce its global workforce by around 8,000, with a significant proportion of the cuts expected in administration and development in Germany. “The organisation we have in Munich is simply too large,” said Chief Executive Milan Nedeljkovic, emphasising the need to make the group “smaller and more agile”. Production in Germany, he added, is operating at a good level of capacity utilisation and is excluded from the staff reduction programme. BMW also aims to strengthen regionalisation in China across its development, production and procurement activities, with the aim of reducing costs and better tailoring products to the needs of local customers.
Cars: BMW to cut management structure by 20 per cent by mid-2027
Frankfurt (Germany), 30 Sept. (LaPresse) – BMW intends to reduce the number of divisions and their associated management functions by 20 per cent by mid-2027, as part of a simplification of the group’s structure to speed up decision-making processes. The German car manufacturer has announced this. The reorganisation will initially affect the highest levels of management, but will also have an impact on lower management levels. However, this measure alone will not result in large-scale job losses. BMW had already announced a voluntary redundancy programme in the summer across all sectors except production. According to company sources cited by the *Frankfurter Allgemeine Zeitung*, the group aims to reduce its global workforce by around 8,000, with a significant proportion of the cuts expected in administration and development in Germany. “The organisation we have in Munich is simply too large,” said Chief Executive Milan Nedeljkovic, emphasising the need to make the group “smaller and more agile”. Production in Germany, he added, is operating at a good level of capacity utilisation and is excluded from the staff reduction programme. BMW also aims to strengthen regionalisation in China across its development, production and procurement activities, with the aim of reducing costs and better tailoring products to the needs of local customers.