Daimler to cut thousands of jobs worldwide by end of 2022

Daimler to cut thousands of jobs worldwide by end of 2022

Daimler to cut thousands of jobs worldwide by end of 2022

It marks the third announcement on cost cuts this week by a major German vehicle company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.

The company had said November 14 that it plans to slash costs by 1.4 billion euros ($1.54 billion) by cutting every tenth managerial position and through other measures, but didn't give details.

Frankfurt am Main (AFP) - Luxury automaker Daimler said Friday it would scrap at least 10,000 jobs worldwide, the latest in a wave of layoffs to hit the stuttering German vehicle industry as it battles with a costly switch to electric.

Daimler's plan announced on Friday includes trimming ten percent of managerial posts and cutting 1.4 billion euros, or 1.5 billion dollars in costs.

Daimler says it is now heading into the most significant transition period in the history of the automobile industry.

And third, "a severance program will be offered in Germany in order to reduce jobs in the administration".

"The total number worldwide will be in the five-digits", Daimler personnel chief Wilfried Porth said in a conference call about the job cull.

Reuters noted that automakers BMW, Continental, and Osram have also announced staff layoffs and cost costs. Management positions will also be trimmed by 10%.

Daimler has repeatedly cut its profit outlook in recent months. A target for 2020 of at least four per cent operating return on sales at the main Mercedes cars unit disappointed investors, coming in at less than half of what French mass-market peer PSA Group generated in the first half of this year.

It said previously agreed protections for some jobs in Germany would remain in force. "A reduction in capacity must not be carried out on the backs of the employees", he said.

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