Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Daimler AG    DAI   DE0007100000

DAIMLER AG

(DAI)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Daimler Looks to Cut Thousands of Jobs

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/29/2019 | 10:06am EST

By William Boston

BERLIN -- Daimler AG aims to slash thousands of jobs over the next three years and cut labor costs by $1.5 billion, the latest round of cost cuts in a sector squeezed between huge investment in new technologies and falling demand for cars.

The announcement Friday by the maker of Mercedes-Benz luxury cars caps weeks of negotiations with labor representatives. All major German auto makers and their suppliers are now shedding staff in the face of dwindling demand as economies slow in China, the U.S. and Europe after years of robust growth.

Daimler, BMW AG, Audi AG, Volkswagen AG and big suppliers such as Continental AG have announced tens of thousands of job cuts in recent months. Continental is closing several plants, including its factory in Newport News, VA.

The companies have blamed the slowing global economy, consumer angst over Brexit and the U.S.-China trade wars for their woes. But they primarily point to an expensive shift from internal combustion engines to electric cars as manufacturers come under increasing pressure to curb greenhouse- gas emissions.

Earlier this month, Daimler said it planned to cut 10% of its global management ranks, affecting more than 1,000 jobs. Daimler wouldn't put a number on the more far-reaching job cuts to its global workforce, which stood at 298,683 employees at the end of 2018.

Under the plan, Daimler said it would try to avoid any forced layoffs of full-time staff. Instead, the company will trim the ranks of temporary workers and not replace workers who retire, taking advantage of the large number of baby boomers reaching retirement age. The company also said it planned to offer voluntary severance packages and be more restrictive in awarding 40-hour contracts to permanent employees.

"With the key points we now agreed with the works council to streamline the company, we can achieve these goals by the end of 2022. We will make the measures as socially responsible as possible," said Wilfried Porth, Daimler's board member in charge of human resources, in a statement.

Under German labor laws, worker representatives have considerable influence over decisions that directly affect the staff. But many of the decisions that Daimler could take to reduce labor costs might not require labor approval.

The works council, which represents the workforce in most matters except wages, has agreed to the broad outline of the restructuring plan but hasn't committed to any specific number of jobs cuts, a spokesperson said.

Michael Brecht, the head of Daimler's works council, said in a statement that management needed to come up with a clearer plan for mastering the shift to electric.

"The workforce needs a clear and comprehensible strategy for going forward," said Mr. Brecht. "A reduction of capacities must not be born on the shoulders of the workforce."

Write to William Boston at william.boston@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AUDI AG 0.00% 808 Delayed Quote.1.00%
BMW AG -0.32% 71.41 Delayed Quote.-2.05%
CONTINENTAL AG -1.78% 111.22 Delayed Quote.-1.75%
DAIMLER AG -0.35% 46.4 Delayed Quote.-5.68%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DAIMLER AG
08:39aDAIMLER : Mercedes-Benz retains Best Luxury Car Brands record
AQ
01/16European new car sales rebounds in fourth quarter, up 21.4% in December - ACE..
RE
01/14Uber veteran Rachel Holt to leave
RE
01/10China's Geely in talks to take stake in Aston Martin
RE
01/10Global passenger car sales by luxury brand
RE
01/10China's Geely in talks to take stake in Aston Martin
RE
01/10Soaring SUV sales keep carmakers on collision course with climate policy
RE
01/10BMW says it sold 2.52 million BMW, Mini and Rolls-Royce vehicles in 2019
RE
01/09Mercedes-Benz poised to clinch premium sales crown for 2019
RE
01/09Mercedes-Benz poised to clinch premium sales crown for 2019
RE
More news
Financials (EUR)
Sales 2019 173 B
EBIT 2019 6 724 M
Net income 2019 4 158 M
Finance 2019 11 752 M
Yield 2019 3,82%
P/E ratio 2019 12,4x
P/E ratio 2020 8,40x
EV / Sales2019 0,22x
EV / Sales2020 0,23x
Capitalization 49 817 M
Chart DAIMLER AG
Duration : Period :
Daimler AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DAIMLER AG
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 28
Average target price 50,87  €
Last Close Price 46,57  €
Spread / Highest target 82,5%
Spread / Average Target 9,25%
Spread / Lowest Target -24,8%
EPS Revisions
Managers
NameTitle
Ola Kaellenius Chairman-Management Board
Manfred Bischoff Chairman-Supervisory Board
Harald Wilhelm Chief Financial Officer
Clemens A. H. Boersig Member-Supervisory Board
Sari Maritta Baldauf Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
DAIMLER AG-5.68%55 211
TOYOTA MOTOR CORPORATION2.38%196 340
VOLKSWAGEN AG3.28%101 021
BMW AG-2.05%51 215
GENERAL MOTORS COMPANY-2.73%50 865
HONDA MOTOR CO., LTD.-0.03%48 620