Daimler to Cut Thousands of Jobs by End of 2022
29 Novembre 2019 - 12:18PM
Dow Jones News
By Max Bernhard
Daimler AG (DAI.XE) said Friday that it plans to cut thousands
of jobs world-wide over the coming years to save costs amid heavy
investments into emissions compliance and future technologies.
The German luxury car maker said it agreed on key points with
labor representatives, including the use of natural fluctuation to
reduce the number of jobs. Daimler said it will also offer
part-time retirement and offer severance programs to cut the number
of office jobs.
An agreed job protection in Germany until the end of 2029 stays
untouched, it said.
The move comes after a string of car makers and parts suppliers
have announced drastic job cuts and restructuring measures in the
face of slowing global demand. At the same time, manufacturers have
to invest in electric vehicles to make their fleets compliant with
stricter emissions targets. Daimler rival Audi AG (NSU.XE) said
this week that it would cut some 9,500 jobs in Germany over the
next years.
Daimler said that by the end of 2022 it plans to reduce staff
costs by around 1.4 billion euros ($1.54 billion). It also wants to
cut the number of jobs in management by 10% globally.
Employees will be offered to reduce their weekly working time
and the company will extend expiring contracts for temporary
workers in administration jobs "very restrictively," Daimler
said.
It will also be "very restrictive" in allowing 40-hour contracts
for permanent employees, it said.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
November 29, 2019 06:03 ET (11:03 GMT)
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