Daimler truck boss pushes for job cuts of 5,000 employees in Germany
Daimler Truck Announces Job Cuts Amidst Criticism from Works Council
Daimler Truck, a leading automotive company, is facing criticism from the German works council and IG Metall following the announcement of plans to cut around 5,000 jobs in Germany by 2030 as part of a cost-saving initiative aiming to reduce recurring annual costs by over €1 billion.
The job cuts, announced by Daimler Truck CEO Karin Radström at the capital market day in early July, are intended to improve efficiency amid falling sales and weaker market conditions, particularly in the U.S. However, the works council and Daimler Truck have agreed on a socially responsible approach to reduce positions, including no compulsory layoffs until 2034, relying instead on natural attrition, early retirement options, and voluntary severance packages.
The tension arises because Daimler Truck is cutting jobs despite reporting a strong growth in electric vehicle sales and a sales increase in Q2, highlighting a disconnect between the company’s cost-cutting measures and its operational performance in some areas. The works council is critical of these cuts, emphasizing the social impact on employees.
Works council chairman Michael Brecht and IG Metall district head Barbara Resch have demanded a withdrawal of the job reduction target announced at the capital market day. Brecht suggested that jobs could be saved by reducing labor costs in Germany.
The job cuts will impact all five German sites (Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth) and affect areas such as administration, development, sales, and production. The company currently employs 28,000 people in Germany.
Despite the opposition, Daimler Truck is implementing extensive job cuts as part of measures announced by CEO Karin Radström. The job reduction target is a point of contention between Daimler Truck and labor representatives, with the latter accepting the need for job cuts but not agreeing on the scale.
The job reduction target was announced amidst a disconnect between the company’s cost-cutting measures and its operational performance, which has sparked outrage among works councils. The announcement made on Friday has set the stage for a potential conflict between the company and its labor representatives.
[1] Daimler Truck to cut 5,000 jobs in Germany by 2030
[2] Daimler Truck to slash 5,000 jobs in Germany by 2030
[4] Daimler Truck to cut jobs in Germany despite electric vehicle growth
[1] In response to the criticism from Germany's works council and IG Metall, Daimler Truck has announced plans for vocational training programs to help employees transition into new positions within the company, as part of the community policy to minimize forced layoffs.
[2] To mitigate the financial impact of job cuts, Daimler Truck is exploring partnerships with local industries and businesses to provide vocational training opportunities, helping employees acquire new skills that meet the needs of the ever-evolving market. This strategy not only benefits the employees but also supports the overall growth of the business.
