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10,000 Jobs At Mercedes-Benz Owner Daimler To Be Cut Worldwide

10,000 Jobs At Mercedes-Benz Owner Daimler To Be Cut Worldwide
A switch to manufacturing of electric cars will see the German carmaker Daimler, ownwer of the global brand Mercedes-Benz, will lay off at least 10,000 jobs, the company has said, it said tat the money saved from the job cuts will help to finance its electric car production efforts.
The number of jobs lost would be "in the five figures", said Daimler personnel chief Wilfried Porth while talking to the media.
It was just ago that another German car manufacturer Audi announced that it would cut about 9,500 out of its 61,000 jobs in Germany for funding its push to electric cars making.
The global car industry was facing “the biggest transformation in its history", Daimler said while making the announcement. "The development towards CO2-neutral mobility requires large investments, which is why Daimler announced in the middle of November that it would launch a programme to increase competitiveness, innovation and investment strength," the German car maker said.
"Part of this programme is to reduce staff costs by around €1.4bn by the end of 2022 and, among other things, to reduce the number of management positions worldwide by 10%," it added.
Costs and employment will be reduced by the company "in a socially responsible manner", which would include the use of "natural fluctuation", Daimler said. "In addition, the possibilities for part-time retirement will be expanded and a severance programme will be offered in Germany in order to reduce jobs in the administration," it added.
The works council of the company has been taken into confidence and it has agreed to this transformation plan, Daimler said. The works council includes representatives from the workers’ union.
There have been criticisms about the attitude of the German car makers and the slowness of the German companies to adapt to the development of new technological trends which includes the technology for self-driving cars as well as production of electric vehicles.
While needing to invest billions in new technology for cars, the German car makers are also faced with the challenge of drop in demand for cars in the Chinese market while global demand for car has been hit by the ongoing trade war between the United States and China

Christopher J. Mitchell

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