Daimler Plans to Cut 10,000 Jobs in Response to Industry Turbulence

The German auto industry is facing a series of setbacks, with Daimler announcing its decision to slash 10,000 jobs over the next two years. This move comes at a time when Europe’s largest economy is grappling with a slowdown in one of its key sectors.

Factors such as declining sales and the industry’s shift towards electric vehicles have been putting pressure on automakers like Daimler, which owns Mercedes-Benz. The need for significant restructuring within the industry has become apparent as profits continue to dwindle.

Recent announcements from other major players in the industry, such as Audi and Continental, also highlight the challenges faced by the German auto sector. Audi revealed plans to cut 10,000 jobs, while Continental stated that around 20,000 positions are in jeopardy. At Daimler, a portion of management roles will be among those eliminated as part of efforts to reduce personnel costs by up to 1.4 billion Euros.

In response to the industry’s struggles, the German government unveiled a new industrial strategy aimed at safeguarding the auto sector. Measures include stepping in to protect critical technologies from foreign acquisitions. However, this move has been met with criticism from Germany’s main car industry association, the VDA, which argues that it may hinder entrepreneurial activities. The VDA has previously warned that up to 70,000 jobs across the country are at risk in the coming years.