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Mercedes-Benz Owner Daimler To Slash 10,000 Jobs In A Bid To Cut Costs

Daimler, that owns Mercedes-Benz, has said that it will cut at least 10,000 jobs worldwide by the end of 2020. The German carmaker said that the step has been taken to cut costs to invest more in electric vehicles. Daimler personnel chief Wilfried Porth told reporters that the number of jobs slashed would be ‘in the five figures’. This is the third such announcement by the company. Daimler is diverting funds towards a cleaner and self-driving technology amid fall in demand from China. China is Daimler’s biggest market but it facing a tough time as the trade war between Washington and Beijing is curbing economic growth.

Daimler said the automotive car industry was going through the biggest transformation in its history. The company in a statement said that moving towards CO2 neutral mobility requires a huge investment. Keeping this in mind, Daimler shared in November the information regarding a programme. According to the programme, it is planning to launch to increase innovation, competitiveness and investment strength. Job cuts are part of this programme. According to the company, it would reduce this cost by around Euro 1.4 billion by the end of 2022. The ultimate aim of the company is to reduce the number of management positions worldwide by 10 per cent. Daimler revealed its plan about job cuts after reaching an agreement with labor unions. The company has around 300,000 workers in 17 countries. It has promised to reduce employment and costs in a socially responsible manner. It is also looking forward to expanding the possibilities for part-time retirement to reduce jobs.

The development comes days after Volkswagen’s luxury car unit Audi announced that it would cut 9,500 jobs over the next six years. This will help it save billions of Euros to finance its electric vehicle production. Also, the German car company BMW recently announced some cost-cutting measures. It has reduced bonuses and other payment schemes after reaching an agreement between labours and management. There are other car manufacturers too have announced similar measures. Car suppliers Continental and Osram too announced cost cuts.

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