German car industry in pain as Daimler set to cut 10,000 jobs

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The move to electric and new EU emissions rules is costly, and the automotive sector in Germany is likely to shed 250,000 jobs over the next decade

Luxury carmaker Daimler said on Friday that it will scrap at least 10,000 jobs worldwide, the latest in a wave of layoffs to hit the stuttering German car industry as it battles with a costly switch to electric.

“The total number worldwide will be in the five-digits,” Daimler personnel chief Wilfried Porth said in a conference call about the job cull. He declined to give a more detailed breakdown. “The automotive industry is in the middle of the biggest transformation in its history,” Daimler said. “The development towards carbon dioxide-neutral mobility requires large investments.”

The group, which employs 304,000 people globally, said the job cuts would be achieved through natural turnover, early retirement schemes and severance packages.Daimler’s announcement comes as the mighty German car industry is buffeted by trade tensions, weaker Chinese demand and a darkening economic outlook.

 

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