Mercedes-Benz Owner Daimler Announces 10,000 Global Job Cuts

Automaker Daimler has announced a plan to cut at least 10,000 jobs, globally, this year.  That would make the Mercedes-Benz owner just the most recent car company to shed workers as the whole industry rushes to make the shift to electric vehicles. 

Closing out the final full week of November, the German car company declared a need to cut staffing costs to free up some capital for developing clean/zero emission vehicles. Obviously, this is a trend in the global auto industry right now, as consumer demand for electric vehicles are sparking new waves of investment in advanced automobile technology.  

In a statement, Daimler said, “The automotive industry is in the middle of the biggest transformation in its history,” adding that they, as a company, aim to be more competitive during this massive industry transition.  The carmaker goes on to say, “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.” 

Daimler also specifically mentions, “Part of this programme is to reduce staff costs by around 1.4 billion EU by the end of 2022 and, among other things, to reduce the number of management positions worldwide by 10 percent.”

Indeed, Daimler personnel chief, Wilfried Porth, noted that they hope to minimize these job reductions. Specifically, he counts that these numbers should remain in the low five digits; and even management positions will be reduced, albeit by about 10 percent.  Right now the company payroll is about 300,000 strong, with more than half based in Germany.  As such, the company says the move could save them upwards of 1.4 billion EU by the end of 2022. That is equivalent to $1.5 billion USD. 

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