Another major automaker is preparing significant workforce reductions.

Jaguar Land Rover has opened a voluntary redundancy program as it targets approximately £1.7 billion in savings over two years. Reports suggest as many as 4,000 salaried and management positions could disappear.

The goal is to simplify the organization and lower the sales volume required for the company to break even.

Volkswagen is pursuing a much larger restructuring for similar reasons.

There is a legitimate argument that large automakers have accumulated too many management layers, committees and overlapping functions.

But there is also risk in repeatedly solving competitiveness problems through headcount.

Product planning, engineering, dealer support, field operations and customer experience all require capable people.

How does an OEM determine which positions are bureaucracy—and which employees represent institutional knowledge the company cannot easily replace?