Save for electrification: Daimler cuts thousands of jobs till 2022

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After Audi, Daimler announces in turn a huge wave of cost cuts, scrapping thousands of jobs until the end of 2022. The group wants to save 1.4 billion euros in personnel costs. The parent company of Mercedes-Benz wants to free up money for the transition to electric driving.

Things do not look good for builders from across the Rhine! After Audi, which has revealed that it wants to remove 9,500 jobs in Germany by 2025, it is the turn of another German giant, in this case Daimler, to plan cuts in its workforce.

The group, which had announced job cuts a few days ago, said its cost-cutting plan would eventually lead to the elimination of several thousand jobs worldwide by the end of 2022. In total, Daimler is planning to to reduce its staff costs by 1.4 billion euros.

Among other things, the car manufacturer is cutting the number of management positions. That should shrink by 10 percent in the coming years, through natural turnover. The company does not disclose exactly how many jobs are lost. Agreements about job guarantees in Germany that run until 2029 remain intact. According to the DPA news agency, which relies on chief of staff Wilfried Porth, at least 10,000 jobs will be lost.

Like its competitor with the rings, Daimler, owner of Mercedes, is currently facing a slowdown in the market, especially in China, and a tightening of the rules on pollution that now compels him to invest heavily in the development of electrified vehicles. The company wants to launch at least 10 electric models until 2025.

Daimler also issued several profit warnings this year, partly due to high costs in the aftermath of the scandal diesel scandal. Trade tensions and difficult market conditions also stand in the way of the company.