Mercedes in trouble: The automaker is also forced to cut a huge number of jobs in China.
Mercedes-Benz is also planning to cut jobs in China as part of a multibillion-dollar cost-cutting program: between 10 and 15 percent of jobs in its auto sales and finance departments will be cut, according to an insider. Similar cuts are also planned for the IT service and the legal department during the year, a person familiar with the matter told Reuters on Thursday(February 27). Staff costs are to be reduced by 25 percent by 2027. The Bloomberg news agency was the first to report job cuts in the sales and finance departments.
The company has not yet commented on this information.Last week, the DAX-listed company announced a five-billion-euro worldwide cost-cutting program through 2027 due to falling profits, which also includes job cuts. Most of the jobs will be cut in Germany-the company does not provide any figures.Chief Financial Officer Harald Wilhelm explained that the BBAC joint venture will also be "scaled down to the right size" and production in China will be optimized. A program was agreed to reduce fixed and variable costs by 20 % and materials costs by 10 %. This means that part of the production capacity is now free. They currently account for 800,000 vehicles in China, but only about 600,000 were produced last year.
According to Wilhelm, in the next few years Mercedes-Benzintends to reduce its global production capacity from 2.5 to 2.2 million units. At the same time, production in Germany will be reduced by 100,000 units, that is, by ten percent.
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