Business

Daimler to cut 'thousands' of jobs worldwide over next 3 years

German automaker Daimler said Friday that it plans to cut thousands of jobs worldwide by the end of 2022. It plans not to fill some vacant posts and to offer severance packages in Germany to reduce administrative jobs.

Daimler CEO says automaker being hurt in the trade war between China and the United States

Ola Kaellenius, CEO of the car manufacturer Mercedes, stands next to a 'Vision EQS' car at the IAA Auto Show in September in Frankfurt. German automaker Daimler (Michel Probst/The Associated Press)

German automaker Daimler said Friday that it plans to cut thousands of jobs worldwide by the end of 2022. It plans not to fill some vacant posts and to offer severance packages in Germany to reduce administrative jobs.

The company had said Nov. 14 that it plans to slash costs by 1.4 billion euros ($1.54 billion US) by cutting every tenth managerial position and through other measures, but didn't give details.

A statement released Friday said Daimler had agreed with its employee council on principles to slim down the company structure and the two sides will work on implementation details over the coming weeks.

It said in the statement that it aims to cut "thousands" of jobs worldwide over three years. Personnel chief Wilfried Porth specified that a low five-digit number of posts will go, news agency dpa reported.

"We will make the measures as socially responsible as possible," Porth said.

Daimler said that, in addition to the job-cutting drive, there will be offers to employees to reduce weekly working time, while the company will extend only "very restrictively" expiring contracts for temporary administrative workers.

CEO Ola Kallenius told reporters in mid-November that the European Union's stricter specifications on carbon dioxide emissions and the transition to more electric vehicles are squeezing the Stuttgart-based company's bottom line.

He said Daimler was also being hurt in the trade war between China and the United States, with new duties being placed on U.S.-built cars that are exported to China.

Earlier this week, Volkswagen subsidiary Audi said it would cut 9,500 jobs in Germany through 2025 as part of a transformation plan to make the company "lean and sustainable."

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