Daimler (Mercedes-Benz) wants to “cut thousands of jobs”

The German car manufacturer Daimler has just announced that “thousands of jobs will be cut”. Daimler said in a press release:

“Daimler will therefore use natural fluctuation to cut jobs that become vacant. In addition, the opportunities for partial retirement will be expanded and a compensation program will be offered in Germany to reduce administrative positions. The implementation of the key points agreement will be further elaborated with employee representatives in the coming weeks”.

“Daimler aims to cut thousands of jobs worldwide by the end of 2022 (…)”.

The Stuttgart-based group cites the difficult environment for the automotive industry as the reason for these measures:

“The automotive industry is undergoing the greatest transformation in its history. The development towards CO₂-neutral mobility requires high investments, which is why Daimler announced in mid-November that it would launch a program to increase competitiveness, innovation and investment power. One component of this program is to cut personnel costs by about 1.4 billion Euros by the end of 2022. Among other things, the number of management positions worldwide will be cut by ten percent.”

Lean management

So it is above all the management that is to be made leaner. At the same time, however, the company wants to reduce its weekly working hours. This is not exactly evidence of optimism about the demand for the Group’s vehicles. The clear-cutting is likely to affect temporary workers in particular:

“In addition to the downsizing measures, Daimler and employee representatives also agreed to reduce further personnel costs. Among other things, there will be offers to employees to reduce their weekly working hours. The company will only extend expiring employment contracts of temporary employees in administration very restrictively. Equally restrictive are the 40 hour fixed-term contracts of the core workforce.”

This is Daimler’s response to Audi’s recent announcement to cut 9500 jobs. Automotive industry, Germany’s job engine, is likely to be a thing of the past. From informed circles we know that banks in the region of car manufacturers are already very cautious about granting loans to employees of car companies. Especially when they mainly produce fossil-fuelled vehicles.

The main sufferers of “slimming down” at German car manufacturers are temporary workers and fixed-term employees. In a way, the dogs bite the last of them.

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