STUTTGART, GERMANY - Mercedes parent company Daimler announced on Friday that it intends to cut 10 000 jobs as part of its plans to save 1.4 billion euros (R22.6bn).
The Stuttgart-based carmaker plans to reduce its workforce mainly by leaving upcoming vacancies in its administrative department unfilled, expanding its semi-retirement scheme and offering redundancy packages.
The "slimming down of the company," as Daimler referred to the cuts in a statement, was negotiated between the management and general works council.
While many details remain unclear, it has been agreed that forced redundancies will remain off the table until the end of 2029.
The announcement comes after Daimler Chairman Ola Kallenius referred to belt-tightening plans in comments to investors earlier this month in London.