Daimler to cut more than 10,000 jobs to save $1.5 billion

Nov 29 (UPI) — Daimler plans to cut more than 10,000 jobs worldwide, following rivals BMW and Volkswagen, in a bid to boost profit margins squeezed by heavy investmentĀ  in electric and self-driving cars. The Maker of Mercedes-Benz said on Friday that the job cuts, at least 3.3 percent of its workforce, would take place by the end of 2022 in order to reduce labor costs by 1.4 billion euros ($1.5 billion).

The company plans to expand its early retirement program and offer buy-out programs to reduce the number of German executives.

Daimler to cut more than 10,000 jobs to save $1.5 billion

The world’s top luxury and commercial vehicle maker is gearing up to cut costs as new chief executive Ola Kallenius warns that returns could remain low over the next two years.

Shares in the Stuttgart-based carmaker fell 0.6 per cent to 51.64 euros. The stock is up 12 per cent this year, giving the company a market capitalisation of 55 billion euros.

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