Daimler Truck to cut 5,000 jobs as German auto woes roll on
Daimler Truck
said Tuesday that it would cut around 5,000 jobs by 2030 in the latest sign of woe for Germany's beleaguered automotive industry.
A "comprehensive and detailed restructuring plan" covering "six core cost reduction areas" will lead to "a significant job reduction in Germany by 2030", the company said in a statement.
In a presentation to investors, Daimler Truck said 5,000 jobs would be cut in Germany, affecting one in seven of its workers there.
The company also said the plans, part of a programme to save one billion euros ($1.17 billion) in Europe by 2030, would involve "relocating production to a country with cost advantages".
"The company will use natural churn and incentivise employees to take early retirement to cut the jobs in a socially responsible way and offer targeted severance packages," it added.
Daimler Truck has struggled in Europe in recent years amid sluggish growth on the continent and particularly in Germany, a core market.
Sales by volume at its Europe-focused Mercedes-Benz Trucks business fell 20 percent by volume last year, helping to drag down overall group sales by 12 percent.
"We are restructuring our organisation to raise efficiency and reduce complexity," said Achim Puchert, board member for Mercedes-Benz Trucks, adding that Daimler Truck was "very determined" to see the programme through.
Daimler Truck says the share of its production made in Germany has already fallen from about a half to a little over a third since 2019.
The maker of yellow Thomas Built school buses and Freightliner trucks joins other German automotive firms that have recently sought to cut costs on home soil.
Wolfsburg-based Volkswagen, Europe's largest carmaker, said last month that about 20,000 of its German employees had agreed to voluntary redundancy as part of plans to shed 35,000 posts by 2030.
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