Daimler CEO plans to cut 11,000 jobs worldwide

As per a recent report, the corporate parent company of Mercedes-Benz, Daimler announced to cut staffing costs of the firm. The move is led by high expenses involved in the development of electric vehicles and also tougher emissions rules which are set to hit the profits of the brand in 2020 and 2021.

By rolling out the plan, the firm is aimed to save more than €1 billion (A$1.6 billion) by the end of 2022. However, it will result in a 10% loss of all management jobs, which is assumed to equate around 1,100 employees worldwide.

During the investors' conference, Ola Kallenius, CEO disclosed that Daimler has spent almost €502 million (A$815 million) on the development of electric cars. Not only this, it paid €870 million (A$1.4 billion) fine to regulators after accepting the fact that 6,84,000 vehicles it sold, did not meet emissions standards. 

Källenius told investors, “The industry is in transformation. We have to do this.” He also mentioned that job cuts will happen in indirect areas, so it will not affect the main assembly line roles. As per the staff spokespersons, the firm is committed to job guarantees happened in 2017 restricting operational layoffs until 2030, except in senior management ranks.

Moreover, the firm is also putting a bar on its investments in plant, equipment, property, research and development categories. Around €100 million (A$162 million) will be saved by cutting the material cost of Mercedes-Benz Vans. Also, a reduction in trucks segment will be seen incorporating Freightliner, Western Star and Fuso.

If we talk about the Mercedes-Benz electric cars, the EQC and EQV are already available in Europe and EQA, EQB and EQE will also join the lineup in the next two years. By 2022, the firm intends to have around ten electric cars on board. Stay tuned to Zigwheels Australia for further updates.

Also read: Mercedes-Benz G-Class EV announced by Daimler