Mercedes-Benz owner to axe 10,000 jobs worldwide

Daniel Fowler
November 30, 2019

The German auto manufacturer said the cuts, which include a 10.0% reduction in worldwide management positions, should streamline the business and reduce staff costs by around €1.4bn over the next three years.

"Daimler will, among other things, use natural fluctuation to reduce jobs".

The German carmaker, which owns Mercedes-Benz, said today that some vacant posts wouldn't be filled and that it would offer severance packages in Germany to reduce administrative jobs. The development towards CO₂-neutral mobility requires high investments, which is why Daimler announced in mid-November that it would launch a program to increase competitiveness, innovation and investment power. "The implementation of the key points agreement will be further elaborated with employee representatives in the coming weeks".

"The automotive industry is in the midst of the biggest transformation in history", Daimler said in a statement.

Daimler hopes to save more than $1.5 billion over the next three years.

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The cull includes slashing management jobs "by 10 percent", Daimler said, reportedly amounting to some 1,100 positions around the world.

Daimler AG plans to eliminate thousands of jobs worldwide to revive profit margins squeezed by heavy investments in electric and self-driving vehicles, following on the heels of rivals BMW AG and Volkswagen AG's Audi division in mapping out cost savings.

Also this week, BMW said that its management and labor had reached an agreement on measures to reduce costs that avoids "drastic measures".

Other measures to reduce personnel costs, including offering a shorter working week. "Equally restrictive are the 40 hour fixed-term contracts of the core workforce". Especially when they mainly produce fossil-fuelled vehicles.

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