SMM: according to reports, people familiar with the matter revealed that Daimler plans to further increase its cost-cutting efforts, a move that may lead to about 20, 000 jobs will be cut.
According to sources, Daimler is likely to raise its labor cost reduction target from 1.4 billion euros to 2 billion euros. Daimler declined to be identified because negotiations between Daimler and union representatives were still ongoing. The final number of layoffs will depend on a number of factors, such as the acceptance rate of voluntary buyouts and the outsourcing of some IT services.
A Daimler spokesman said the company would not comment on speculation. German media reported on July 22nd that Daimler could cut up to 30,000 jobs. Currently, the company employs about 300000 people worldwide.
Daimler will release its latest results on July 23, a week after the company said it made an initial loss of 1.68 billion euros ($1.9 billion) before interest and tax in the second quarter. Daimler shares also climbed to their highest level in more than a month, boosted by news that demand for cars recovered at the end of the second quarter, sending the company's losses below analysts' expectations.
Earlier this month, Daimler CEO Corinson (Ola Kallenius) said at its annual shareholder meeting that the company must step up cost-cutting efforts to improve returns. Daimler is reviewing its global production network to reduce excess capacity, a move that could lead to the sale of a plant in France. Earlier, Daimler had terminated the expansion of a plant in Hungary.
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