The owner of Mercedes-Benz car company, Daimler, has said it will sack at least 10,000 workers worldwide to reduce cost, even as it plans to transit into the manufacturing of electric cars.
Daimler is a German multinational automotive corporation that owns or has shares in a number of car, bus, truck and motorcycle brands.
According to the personnel chief of the company, Wilfried Porth, the number of jobs cut would be “in the five figures”.
He said the car industry was evolving, and as such, there was a need to lay off some of their workers so as to save money that will efficiently fund the electric car company.
“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%,” he said.
The company which has over 250,000 staff strength and factories in 17 nations, said the reduction of staff would be gradual but would be “in a socially responsible manner”.
He stated that the decision was reached by the organization’s works council, which includes union representation.
BBC reports that German carmakers have been slow to adapt to new technological trends, including self-driving cars and electric vehicles.
At the same time, they have been suffering falling demand in China, while the trade war between Washington and Bejing has also dented growth.