Frankfurt (Reuters) – Mercedes -Benz said on Tuesday that it has obtained the agreement of its works council to offer departure compensation to its staff and half reducing the wage increases provided, as part of a large cost reduction campaign, while the automaker is striving to relaunch its profits.
The company refused to specify the number of positions will be deleted, but said that production employees would not be assigned and that the layoffs had been excluded, the management having agreed to extend a guarantee of employment security until the end of 2034.
Last month, during the presentation of the annual results, Mercedes’s financial director Harald Wilhelm, had declared to plan to outsource a large part of the group’s activities going finance to human resources, including purchases, reduce the workforce by not renewing the posts left vacant by retirements and negotiating voluntary departures.
Mercedes-Benz plans to reduce its production costs by 10% by 2027 and double this figure by 2030, beyond a current plan launched in 2020 to reduce costs by 20% between 2019 and 2025.
(Ludwig Burger, Victoria Waldersee, Mara Vîlcu for the )
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