The CUTS Are Coming! Daimler Prepares To Lay Off Over 1,000 Workers...

German carmaker Daimler will cut 1,100 management positions worldwide, German daily Süddeutsche Zeitung reported on Friday.

The maker of the Mercedes-Benz is instituting an austerity program as it grapples with expensive recalls and a slowing global market.

The cuts will affect 10% of all senior roles in Germany alone, the Süddeutsche Zeitung wrote, citing an email sent to staff by the group's works council. The news was confirmed by Handelsblatt and German news agency DPA...

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PUGPROUD - 11/10/2019 6:19:40 AM

-1 Boost

Its only just begun. All automakers faced with significant cash flow issues going forward will be paring back all non essential personnel and expenses plus eliminating slow selling models. There will be blood in the water. EV startups will find it difficult or impossible to find new funding and close shop. Small parts suppliers and marginal dealers will fold. In their place will be new innovative ways created to run every aspect of the auto business from research, design, development, manufacturing, marketing sales, etc in a more efficient manner. The strong will struggle at first but survive and succeed. The weak will not, either closing their doors or sold. Today's auto industry practices will be viewed as ancient times in fifty years.

Car4life1 - 11/10/2019 7:01:03 PM

+1 Boost

Lol Mercedes is the #1 luxury auto maker in the world. They are doing what every smart company would do, trimming the fat in MANAGEMENT

Do a quick google search of any Fortune 500 company and you are bound to find overlapping of titles/responsibilities

Asst Director/Director/ Senior Director/Executive Vice President/Senior Vice President/VP/ asst Manager/manager/senior manager/specialist/senior specialist so on and so forth...

Millions saved in revenue right there

CANADIANCOMMENTS - 11/10/2019 11:53:04 AM

+1 Boost

The Germans have gone from the 3 sausage model to now having model ranges so vast there is a car or SUV or CUV for every niche and micro niche. At some point it has to stop and be cut back to focus on models that have volume.

MDarringer - 11/10/2019 12:44:24 PM

-5 Boost

They've gotten out of control.

Mercedes desperately need to rethink its A/CLA/C/E sedans and reduce that to two. I'd move the C and the E down a notch and install an EV at the E price point.

Audi has no sedans that sell well.

BMW is near implosion.

Hauerg - 11/10/2019 12:49:37 PM

+4 Boost

If it wanted to transport information the headline should not be about 1000 workers but about „1100 managers“.

Vette71 - 11/11/2019 10:14:19 AM

-1 Boost

Workers are next. It is just harder to lay them off in Europe. In an EV era the companies won't need engine plants, etc.

cidflekken - 11/11/2019 12:22:03 AM

+1 Boost

Maybe I'm wrong, but does this indicate a major slowdown in product development? Mercedes has been pumping out new product faster than any other brand, premium or not. This has been key to its lead globally and why it may regain its lead from BMW before the end of the year in the US. But if a reduction in management means fewer individuals to lead projects, what does this say about the future of the brand? Not that I'm worried because all companies are currently facing similar situations.