Mercedes-Benz will avoid hob cuts as it aims to outperform Bmw

Article by Christian Andrei, on March 15, 2013

Daimler’s workers at its Mercedes-Benz plants don’t have to worry as the company is adamant that there will be no job cuts as it aims to outperform BMW in sales and profit. Daimler spokesman Florian Martens said that the company is doing everything it can to raise efficiency at Mercedes-Benz Cars.

However, there won’t be any firings at least until the end of 2016. Its agreement with unions doesn’t permit job cuts for this period. Manager Magazin had recently reported that Mercedes is planning to cut over 1,000 non-production jobs in sales, human resources and finance departments. While it’s true that Daimler is being pressured to increase Mercedes’ sales and profits, it simply cannot lay off anyone under its agreement with the unions.

Last year, Daimler put off a Mercedes profit target to 2014 at the earliest, four years later than the initial plan. CEO Dieter Zetsche’s plan to stimulate profits included a savings program named Fit for Leadership to reduce 2 billion euros ($2.6 billion) from spending by the end of 2014. Last Wednesday, Martens said that it could only reduce the work force on the basis of voluntary agreements.

He clarified that nothing has been decided yet on the personnel measures. Last month, Zetsche's contract was extended by three years, shorter than a planned five-year extension after investment funds expressed concerns.

Topics: mercedes-benz, bmw, sales

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