30,000 jobs worldwide: Daimler job cuts more drastic than expected

By switching to electromobility, Daimler announces austerity measures even before the Corona crisis. According to a media report, they should now be significantly larger and more rigorous. Locations in Germany could also be affected.

At Daimler, the plans to cut personnel in the corona crisis are even more extensive than previously known, according to a report by "Manager Magazin". Globally, including vacant positions, around 30,000 jobs could be lost, the magazine reported online with reference to company sources.

Daimler CEO Ola Källenius wants to push the breakeven point by ten to 15 percent and reduce costs accordingly. He also had plant closings calculated. Källenius will present his plan to the supervisory board at the end of July. Most recently it was said in corporate circles that around 20,000 of the almost 300,000 employees should leave the company in the coming years. A Daimler spokesman said the Dax group would not comment on the speculation.

As the magazine further reports, the commercial vehicle subsidiary Daimler Truck AG alone is to receive almost 17,000 employees outside of production severance and partial retirement offers. The car plant in Aguascalientes in Mexico operated jointly with Nissan, the factories in Brazil, the van production in Ludwigsfelde in eastern Germany, component locations in Berlin and Hamburg and the still new engine plant in Jawor, Poland, would be in question.

Savings program due to e-car conversion

Due to the switch to electric cars and other investments worth billions, Daimler announced last year that it would save billions and cut staff on a voluntary basis. The conflict between management and the works council had recently intensified. Head of HR Wilfried Porth questioned the 2017 pact to waive operational layoffs until the end of 2029. Should the works council continue to refuse to make savings, layoffs would be possible.

Works council chief Michael Brecht declined to drop his salary and said that a possible reduction in working hours with partial wage compensation would be an option. The carmaker announced last week that an operating loss of 1.68 billion euros had been incurred in the second quarter, primarily due to the slump in business in the pandemic. The Dax Group will present detailed figures on Thursday.

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