Daimler plans to cut over a thousand top managers around the world

Daimler plans to cut over a thousand top managers around the world

November 8, 2019 0 By autotimesnews

Daimler CEO Ola Kallenus will show an updated strategy, which may include optimization measures, at the end of this month.

Job cuts are part of a large-scale plan to reduce costs, which was drawn up by the general director of the German concern Mr. Kallenius. This was reported by Bloomberg and Sueddeutsche Zeitung.

  According to an internal letter sent to employees by the head of the production council Michael Brecht and his deputy Ergun Lumali, union representatives are ready to discuss a proposal to redeem part of the jobs.

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 Representatives of trade unions recognize the need for targeted measures to improve the financial situation of the automobile manufacturer in the context of the transition of the seismic industry to electric and self-propelled cars.

But they “categorically rejected” the proposal of the authorities regarding the reduction of personnel costs, skipping the planned increase in salaries in 2020 or delaying individual salary increases.

After the unsuccessful start of the year, which forced Daimler to reduce its own profit targets for the current year, the global supply of Mercedes-Benz cars has improved over the past few weeks.

The recent recovery in machine sales is giving some relief, however, as representatives of the corporation noted, in order to remain competitive and solve the problems of transforming the mobility sector, “extensive countermeasures” are required and the company analyzes the costs of all operations.

In addition to this, it became known earlier that Daimler will only create electric cars. This was reported by one of the official representatives of the German concern.