Daimler to hold massive job cuts worldwide

Daimler to hold massive job cuts worldwide

November 29, 2019 0 By autotimesnews

Daimler said it plans to cut thousands of jobs around the world by the end of 2022 after it reaches an agreement on its plans with unions.

In Germany, where the largest number of Daimler employees are based, employees will be offered severance pay and early retirement, Daimler said in a press release on Friday.

Job cuts are aimed at saving more than 1 billion Euros (1.1 billion US dollars) by the end of 2022. The cuts include the elimination of 1,100 leadership positions worldwide, or about 10% of its management.

“The automotive industry is in the midst of the largest transformation in its history,” Daimler said on Friday.

Audi said Tuesday that it plans to cut about 15% of its German workforce to protect its profitability. BMW cuts bonuses for workers to reduce labor costs, but cuts should avoid “drastic measures.”

Daimler’s job cuts are taking place after Ola Kallenius, the new CEO, outlines his plans for the future of the company. Its 2020 goal of at least 4% operating profit from sales in the main division of Mercedes automobiles has disappointed investors, accounting for less than half of what the French company PSA Group produced on the market in the first half of this year.