Mercedes-Benz Shift to Electric Claims Thousands Jobs
Mercedes-Benz Shift to Electric Claims Thousands Jobs
The Daimler logo is seen before the Daimler annual shareholder meeting in BerlinMore
30 November, 2019, 19:43
Mercedes-Benz's parent company Daimler became the latest German automaker to announce job cuts as the industry deals with the transition to electric vehicles, struggling sales and tariff tensions.
Daimler on November 28 announced thousands of job cuts across the globe by the end of 2022 after reaching an agreement on its plans with labour unions. The company is also cutting 10% of worldwide management positions.
"The total number worldwide will be in the five-digits", said personnel chief Wilfried Porth.
The Frankfurt-listed company, which employs nearly 300,000 people and has factories in 17 countries, will use natural fluctuation to reduce jobs, as well as options for part-time retirement and a severance program in Germany.
The company said in a statement that the program is a response to "the biggest transformation" in the history of the automotive industry, as the development towards CO2-neutral mobility requires large investments. The company employs 304 680 staff at the end of the third quarter.
Daimler said the company and employee representatives have agreed on measures to reduce costs and employment in a socially responsible manner, and the implementation details will be developed in the coming weeks.
Other major vehicle companies have in recent months already unveiled plans to cut some 30,000 jobs in the sector over the next years.
The German Audi said it wants to keep up with 9,500 jobs, followed by more than 5,000 at Volkswagen, about 5,500 at auto parts supplier Continental, while Bosch wants to remove more than 2,000 jobs.
Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said. Articles appear on euronews.com for a limited time.
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