Nov 30, 2019

Benz and Audi to cut 10,000 jobs worldwide

Daimler, the German carmaker that owns Mercedes-Benz, has said it will shed at least 10,000 jobs worldwide as it seeks to fund the switch to electric cars.
Daimler personnel chief Wilfried Porth told journalists the number of jobs lost would be "in the five figures".

The move comes days after rival Audi said it would cut 9,500 of its 61,000 jobs in Germany for similar reasons.

Daimler said the car industry was going through "the biggest transformation in its history".

"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," the firm said.

"Part of this programme is to reduce staff costs by around €1.4bn by the end of 2022 and, among other things, to reduce the number of management positions worldwide by 10%."

Audi to cut 9,500 jobs to fund electric car push

Carmaker Audi is to cut 9,500 of its 61,000 jobs in Germany between now and 2025 to make more money available for electric vehicles and digital working.

The cuts - which aim to save €6bn (£5.1bn) - will be achieved through an early retirement programme.

But the Volkswagen-owned firm also said its move into electric cars would mean the creation of up to 2,000 jobs.

It comes less than a fortnight after Daimler said it would cut more than 1,000 jobs by the end of 2022.

The car industry is facing a downturn in key markets, including China, as well as increased costs as it meets tougher European Union emissions regulations and the costly switch to electric vehicles. Audi saw falling sales, revenues and operating profits in the first nine months of 2019.

In a statement, the carmaker said the job cuts would "take place along the demographic curve - in particular through employee turnover and a new, attractive early retirement programme".

"The company must become lean and fit for the future, which means that some job profiles will no longer be needed and new ones will be created."

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