Workers place portions at the bottom of a car at the Mercedes-Benz AG car factory in Kecskemet, Hungary, on 7 May.
Workers affix parts to the underside of an automobile at the Mercedes-Benz AG automobile plant in Kecskemet, Hungary, on May 7.
Daimler AG’s plans to reduce prices more deeply than expected before the global pandemic may result in the loss of some 20,000 jobs, according to others close to the issue.
The Mercedes-Benz manufacturer has raised its workload savings target to 2 billion euros ($2.3 billion) of 1.4 billion euros, people said, who asked not to be known because talks with trade union representatives are still ongoing. The maximum number of task cuts will be decided through a variety of factors, adding voluntary buyback acceptance rates and outsourcing efforts for some IT services.
A Daimler spokesman declined to comment on the speculation. Director Magazin reported earlier on Wednesday that Daimler could cut to 30,000 jobs. The company is located in Stuttgart, Germany, with around 300,000 workers worldwide.
Daimler will give a clearer picture of its profit functionality on Thursday, one week after reporting an initial loss of 1.680 million euros at the time of the quarter before interest and taxes. A recovery in auto demand at the end of the quarter prevented the company from wasting both cash and analysts hoping, bringing stocks to the point in more than a month.
“The forecast and intensity of the restructuring will be equivalent to investors,” Bloomberg Intelligence analysts Michael Dean and Gillian Davis wrote in a July 17 report on Daimler’s full results.
Chief Executive Ola Kallenius said at daimler’s annual general meeting earlier this month that the automaker needed to step up its spending cuts efforts to consolidate yields. The company is in the process of reviewing its global production network to get rid of the excess capacity that can lead to the sale of a plant in France. He has already halted plans to expand Hungary.