Mercedes-Benz to cut 10,000 jobs worldwide

Andrew Cummings
November 30, 2019

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

Secondly, Daimler will slash through management positions, shaving ten percent, and will only extend expiring contracts for temporary workers "very restrictively".

All around the auto industry companies are trying to find ways to cut costs to allow for the development of electric cars.

"The total number worldwide will consist of the five digits", said Daimler chief of staff Wilfried Porth in a conference call about clearing the job.

Together with other manufacturers, Daimler is trying to prepare for awkward new European Union emissions regulations that will come into force next year, thereby speeding up the costly transition to emission-free electric cars and plug-in hybrids.

"In addition, the possibilities for part-time retirement will be expanded and a severance programme will be offered in Germany in order to reduce jobs in the administration", it added.

Daimler is not the only German manufacturer looking to reduce staff numbers.

Other major vehicle companies have in recent months already unveiled plans to cut some 30,000 jobs in the sector over the next years.

Group operating profit will be "significantly decrease" than a year ago, the company said last month.

While the company has staunchly denied cheating, it nevertheless agreed to pay an 870-million-euro fine in Germany for having sold vehicles that did not conform with legal emissions limits.

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