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Daimler's Cost-Cutting Measures Take Concrete Shape, Affecting Thousands of Employees Across Europe
Automotive giant Daimler, known for its Daimler Trucks division, has announced far-reaching cost-cutting measures. The preliminary plans, unveiled some time ago, are now being implemented, with more details emerging. These measures are causing concerns among employees.
The "Cost Down Europe" program, initially intended to curb recurring costs by over €1 billion annually by 2030, is now taking shape. Daimler Trucks seeks to implement this strategy across various departments, including production, development, research, and sales, impacting around 28,000 employees.
Workforce adjustments are on the table, encompassing hiring freezes, reduced working hours, and staff reductions. However, the exact number of jobs at risk has not been finalized. Daimler is working closely with employee representatives to ensure socially acceptable adjustments.
Specific plant closures are under review, with each facility's viability being assessed individually. This cautious approach aligns with industry practices, such as those by Ford and Volkswagen. Moreover, the company is promoting greater personnel flexibility, including temporary work arrangements, to offset remuneration components.
Despite the workforce reductions, Daimler Truck has a "future security agreement" that protects job prospects for certain employees till 2030. This agreement is part of the collaborative approach with employee representatives. The program affects production, headquarters, administration, sales, and development across Germany.
The bus segment is excluded from these measures. The agreement includes offsetting remuneration components and greater flexibility in personnel management, which may lead to changes in compensation and working conditions.
The cost-cutting measures are aimed at improving profitability and competitiveness in the European market amidst rising operational costs and shifting demand. While the measures are socially acceptable, they may impact employee morale and retention, particularly if significant job losses occur. The collaborative approach with employee representatives is crucial in managing these impacts.
Other departments, such as finance and business, may also be affected by Daimler's cost-cutting measures, as the company seeks to streamline and optimize its operations across various segments.
In an attempt to manage costs and maintain profitability, Daimler Truck is exploring temporary work arrangements and adjusting compensation components for its employees, which could lead to changes in their working conditions.
