SMM: according to reports, Daimler Group Human Resources Director Wilfried Porth said in an interview with the German news agency DPA that the company needs to lay off more than the previously announced 15000 employees. Porth did not disclose the exact number of layoffs, but said, "the new layoffs will exceed the previously announced figures, which is necessary for the group."
Kang Linsong (Ola Kallenius), Daimler's chief executive, said at a board meeting on July 8 that the group would step up its cost-cutting efforts, including a 1.4 billion euro reduction in personnel expenses. Sales of the Mercedes-Benz brand fell nearly 19 per cent to about 870000 vehicles in the first half of this year, according to data released by Daimler. However, the brand's sales in China hit a new high in the second quarter. Mr Kang said that despite the rebound in the Chinese market, the business losses accumulated in recent months could not be recovered by the end of the year and further cost-cutting was needed.
Daimler also needs to negotiate layoffs with unions and workers' representatives, who make up half of the company's supervisory board. Daimler had previously agreed not to cut jobs until 2030, but the epidemic led to a severe recession in the world economy, increasing pressure on the group's operations and providing a basis for renegotiation with the unions. In addition, Daimler needs to save costs to invest in electrification.
At present, in order to deal with the crisis brought by the epidemic, the world's major automakers have stepped up cost-cutting efforts. The epidemic has led to the closure of car dealerships and factories and the stagnation of global car sales. Although sales have begun to recover slowly, global car sales are expected to fall by double digits this year.
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