Daimler to Cut at Least 10,000 Jobs -- Update

(Updates with HR chief's comments)

 
   By Max Bernhard and Markus Klausen 
 

Daimler AG (DAI.XE) plans to cut at least 10,000 jobs world-wide over the coming years to save costs amid heavy investments into emissions compliance and future technologies.

Human Resources Director Wilfried Porth said Friday that the car maker plans to cut a low five-digit figure of jobs, indicating that at least 10,000 jobs should be affected.

In production, no job cuts are planned, Mr. Porth said.

Daimler said Friday that it agreed with labor representatives to use natural fluctuation to reduce the number of jobs and that it will also offer part-time retirement and severance programs.

Agreed job protection in Germany until the end of 2029 remains untouched, the company said.

The move comes after a string of car makers and parts suppliers have announced drastic job cuts and restructuring measures in the face of slowing global demand.

Daimler said that by the end of 2022 it plans to reduce staff costs by around 1.4 billion euros ($1.54 billion). It also wants to cut the number of jobs in management by 10% globally.

Employees will be offered to reduce their weekly working time and the company will extend expiring contracts for temporary workers in administration jobs "very restrictively," the company said.

It will also be "very restrictive" in allowing 40-hour contracts for permanent employees, it said.

Write to Max Bernhard at [e-mail] and Markus Klausen at [e-mail]

(END) Dow Jones Newswires

November 29, 2019 08:37 ET (13:37 GMT)

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