Daimler to 'cut thousands of jobs'

Daimler says that it will, among other things, use natural fluctuation to reduce jobs. In addition, the possibilities for part-time retirement will be expanded and a severance program will be offered in Germany in order to reduce jobs in the administration. The implementation of this agreement is to be further developed with employee representatives in the coming weeks. The German automotive group aims to cut thousands of jobs worldwide by the end of 2022. The agreed job protection in Germany until the end of 2029, which was promised and agreed upon in the spin-off of Mercedes-Benz Cars & Vans and Daimler Trucks & Buses, stays untouched for Daimler AG, Mercedes-Benz AG and Daimler Truck AG. The reasons behind the cost savings measures is said to be the current shift within the automotive industry. The development towards CO2-neutral mobility requires large investments, which is why Daimler announced in the middle of November that it would launch a programme to increase competitiveness, innovation and investment strength. Part of this programme is to reduce staff costs by around EUR 1.4 billion by the end of 2022 and, among other things, to reduce the number of management positions worldwide by ten percent. In addition to the measures to streamline and rightsize the company, Daimler and the employee representatives also agreed to reduce further staff costs. Among other things, there will be offers to the workforce to reduce weekly working time.