Daily Management Review

Daimler to cut thousands of jobs by 2022


The German carmaker Daimler AG will cut thousands of jobs around the world by the end of 2022 in order to save on costs amid large investments in innovative technologies.

tico_24 via flickr
tico_24 via flickr
This will allow Daimler to achieve the goal of reducing staff costs by €1.4 billion by the end of 2022.

"The automotive industry is undergoing the largest transformation in its history. Moving towards CO2-neutral mobility requires major investments, and in mid-November, Daimler announced launch of a program designed to increase competitiveness, develop innovation and investment benefits," Daimler says.

"Part of this program is to reduce staff costs by about €1.4 billion by the end of 2022 and, in particular, reduce the number of managerial posts around the world by 10%," the press release said.

The company management agreed on key points of the program with the trade unions, and promised to carry out reductions "as socially responsible as possible."

Previously agreed guarantees for the safety of jobs in Germany remain in force until the end of 2029, the company notes.

In the future, Daimler will offer employees reduced working hours and will be very strict in extending contracts for temporary workers.

Daimler shares lose 0.7% on Friday trading. Since the beginning of this year, the company's capitalization has grown by 12.4% to €55.6 billion.

Earlier this week, another German automaker - Audi - announced plans to cut 9.5 thousand jobs in Germany by 2025.

source: reuters.com