Daimler’s Boosted Cost-Cutting Target Puts 20,000 Jobs at Risk
Workers affix parts to the underside of an automobile at the Mercedes-Benz AG automobile plant in Kecskemet, Hungary, on May 7.
Photographer: Akos Stiller/BloombergThis article is for subscribers only.
Daimler AG’s plans to make deeper cost cuts than planned before the global pandemic could translate to the elimination of about 20,000 jobs, according to people familiar with the matter.
The Mercedes-Benz maker has boosted its labor-cost savings target to 2 billion euros ($2.3 billion) from 1.4 billion euros, said the people, who asked not to be identified because talks with union representatives are still ongoing. The final number of job cuts will be determined by different factors, including acceptance rates of voluntary buyouts and efforts to outsource some IT services.