Daimler says it is now heading into the most significant transition period in the history of the automobile industry.
"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%". "We will make the measures as socially responsible as possible", said in a statement Wilfried Porth, Member of the Board of Management of Daimler AG, Human Resources, Labour Director and Mercedes-Benz Vans.
Daimler's plan announced on Friday includes trimming ten percent of managerial posts and cutting 1.4 billion euros, or 1.5 billion dollars in costs.More news: Small Business Saturday Event in Keauhou
"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.
Along with other manufacturers, Daimler is scrambling to get ready for tough new European Union emission rules taking effect next year, forcing it to accelerate the costly shift to zero-emissions electric cars and plug-in hybrids.
Daimler, which has a global workforce of almost 300,000 and factories in 17 countries, said it would reduce costs and employment "in a socially responsible manner", including the use of "natural fluctuation".More news: Toronto Man Arrested for Throwing Poop at Asian College Students
USA vehicle giant Ford plans to scrap some 5,000 jobs in Germany alone.
A total of 125,000 new ones will be created, he predicted. The changes will save €1.4 billion ($1.5 billion) by the end of 2022, Daimler said.More news: New Zealand v England: Daryl Mitchell confirmed for Black Caps test debut
Adding to Daimler's woes this year were expensive recalls linked to faulty Takata airbags and to diesel cars allegedly fitted with software to dupe emissions tests.