Following the trend of other major automakers who are struggling, Mercedes will make drastic labor cuts in an effort to save money.
Daimler AG, parent company of Mercedes and other brands, will reportedly eliminate up to 15,000 jobs in the coming years. German newspaper Handelsblatt reports that Daimler will actually blow past their previous projection of axing 10,000 jobs by the end of 2022. They cite company sources in claiming that it will be closer to 15,000 jobs on the chopping block. The effort should save the company $1.4 billion euros ($1.525 billion USD).
It’s not entirely clear whether the job loss will only affect Mercede’s German and European manufacturing plants, or spread into the dozens of international plants too.
The paper reports that Daimler will announce their plans on Tuesday during their annual news conference. Company CEO Ola Kallenius will apparently also announce plans to reduce investments in certain money-losing segments of the business. The S-Class convertible and coupe versions might be canned entirely. The B-Class also faces an uncertain future. Mercedes already gave up on the X-Class pickup, which ceases production in May 2020.
Although the Handelsblatt report has not been confirmed by the company, a Daimler spokesperson declined to comment.