01:31 GMT +306 December 2019
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    Mercedes-Benz Owner Daimler Says It Will Cut 10,000 Jobs Worldwide

    © AFP 2019 / MIGUEL MEDINA
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    Daimler, the German carmaker that owns Mercedes-Benz, has said it will shed at least 10,000 jobs worldwide as the company seeks to fund the transition to electric cars.

    Daimler personnel chief Wilfried Porth told journalists the number of jobs lost would be "in the five figures" – just days after rival automaker 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.  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%," the firm said.

    Daimler, which has a global workforce of nearly 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."

    "In addition, the possibilities for part-time retirement will be expanded and a severance programme will be offered in Germany in order to reduce jobs in the administration," the firm added.

    According to Daimler, the plans had been agreed with the firm's works council, which includes union representation.

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