Mercedes-Benz owner Daimler to cut 10000 jobs worldwide

More pain for German car industry as Daimler axes 10,000 jobs

More pain for German car industry as Daimler axes 10,000 jobs

Daimler, who owns Mercedes-Benz and also manufactures trucks, vans and buses, said Friday he planned to cut thousands of jobs by the end of 2022, but then made it clear that the number would be higher.

Daimler, which has a global workforce of almost 300,000 and factories in 17 countries, said it would reduce costs and employment "in a socially responsible manner", including the use of "natural fluctuation".

The electric tortilla will be done, one way or another, and while engineering jobs for internal combustion engines and other things will probably stay in the way, the big manufacturers have decided that many more eggs must be broken first.

The group, which employs 304,000 people globally, said the job cuts would be achieved through natural turnover, early retirement schemes and severance packages.

Daimler said the plans had been agreed with the company's works council.

At the same time, the merger between Fiat Chrysler Automobile N.V. and the French automaker PSA are also expected to result in consolidations and jobs cuts in Europe. Daimler also said that it will extend expiring contracts for temporary workers in the administration "very restrictively" and will also be "very restrictive" in allowing 40-hour contracts for permanent employees.

The measures are aimed at lowering the company's variable cost structure and improving efficiency throughout the organization. Daimler has confirmed that the "Key Points Agreement" will be further developed with employee representatives in the coming weeks.

The decision to reduce headcount was roughly outlined during the company's capital market day on November 14. The company said that it was seeking to reduce labor expenses by 1.4 billion euros, eliminating 10% of the company's management positions worldwide by the end of 2022.

The company said it wanted to save €1.4bn (£1.2bn) in staff costs as it invests billions in the cars of the future. Paccar Inc. (NASDAQ: PCAR) reported that it was scaling back production by 6% to 8% at the end of the third quarter, prompting the company to lay off 100 workers at a Kenworth facility in November. Engine maker Cummins, Inc. More than 1,000 managers stand to lose their jobs.

"The development towards CO2-neutral mobility requires large investments", it added. We will make the measures as socially responsible as possible, "says Wilfried Porth, Member of the Board of Management of Daimler AG, Human Resources, Labour Director and Mercedes-Benz Vans".

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