German carmaker
German carmaker

German luxury car manufacturer Daimler would increase job cuts to 15,000 jobs, seeking to reduce cost by more than 1.4 billion euros (1.53 billion U.S. dollars) through the company restructuring, the German newspaper Handelsblatt reported on Monday.

Previously, Daimler had only announced 10,000 job cuts. According to Handelsblatt, Daimler would attempt to part with the employees by paying compensations or via early retirement or partial retirement schemes.

Chief executive officer (CEO) Ola Kaellenius would present a plan for the future of the German automotive company including a mix of investments in sustainable luxury vehicles in combination of austerity measures. On Tuesday Daimler is scheduled to present the results for the financial year 2019.

According to Handelsblatt, cost-saving measures would also include reducing the model range of Daimler. In addition to the end of production of the X-class platform truck, a joint project with Nissan, Daimler’s top of the range luxury S-class convertible and the S-class coupe would be discontinued.

Michael Brecht, head of the Daimler’s works council, demanded that CEO Kaellenius would need to present a clear forward strategy in addition to a saving program. “We have a mood between anger and disappointment among the staff. People want orientation and clarity”, Brecht told Handelsblatt.

Michael Muders, fund manager at Union Investment criticized that in contrast to automotive giant VW, Daimler would have missed to “completely questioned itself in the wake of the diesel scandal.” Muders warned that there would be a lack of supply for electric vehicles and the truck business would be lagging behind the competition. Enditem

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