Daimler intensifies cost cutting, will lay off 15,000 jobs

In November 2019, it had announced its plan to cut 10,000 jobs by 2022, but is now increasing the number.

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Daimler is cutting costs with greater intensity now, and is reportedly planning to lay off about 15000 employees. In November last year, the German luxury car manufacturer had announced plans to cut 10,000 jobs in order to bring down employee costs by approx. $1.5 billion in three years’ time.

As part of its cost-cutting measures, the Company will also cut down investments in projects that are incurring losses.

It had already laid off 900 people in the US and 250 in Mexico in October, 2019, following a drastic dip in sales of commercial vehicles in North America.

The Company now seeks to bring down labour costs by doing away with 10 per cent of its managerial employees, across the globe, within two years.

Last year, while announcing its intentions to trim the workforce—after discussing with employee representatives—the Company had revealed its intentions to cut staff costs in a “socially-responsible manner”. At the time it was announced that about 10,000 employees will be asked to leave, globally, by 2022. As per the original plan, the aim was to cut employee costs by a billion euros at Mercedes-Benz Cars & Vans, and by 300 million euros at Daimler Trucks & Buses.

Other measures, such as part-time retirement programmes and severance offerings were also being worked out then. The Company had also shared plans to reduce working hours and extend expiring contracts of the temporary employees.

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