DaimlerChrysler cuts 8,500 Mercedes jobs
Another 8500 jobs to be cut. It's not just the US that's losing jobs. How many jobs can be cut before there's no more jobs to cut?
The good thing to come out of this is that due to the union agreement, these cuts will be voluntary and will include a separation package unlike most cuts. Still, I wonder how many of these people have a Plan B.
Namaste,
Brian
iWon Money & Investing
DaimlerChrysler cuts 8,500 Mercedes jobs
Wednesday September 28, 11:55 AM EDT
FRANKFURT (Reuters) - DaimlerChrysler on Wednesday offered staff at its premium Mercedes Car Group division voluntary redundancy packages that aim to cut 8,500 jobs in Germany over 12 months.
The world's fifth-biggest carmaker said the move would cost 950 million euros, to be offset by extraordinary income and efficiency gains.
It reiterated its forecast for a slight rise in 2005 operating profit excluding charges to restructure its Smart minicar business.
The Mercedes division employed around 105,000 staff at the end of last year, of which some 94,000 were in Germany.
"These headcount reductions are indispensable. They will contribute to significant improvements in the competitiveness of Mercedes-Benz through an increase in productivity," it said in a statement. "The measures will also contribute to the sustained safeguarding of production (in) Germany."
DaimlerChrysler and its works council struck a deal last year that guaranteed no worker at its German plants would be laid off through the end of 2011 in exchange for labor concessions that will generate 500 million euros in annual savings from 2007.
The jobs move underscores German carmakers' attempts to cut manufacturing costs and boost profitability while paying the highest labor costs in the global auto industry.
Volkswagen on Tuesday struck a deal with staff to make a new compact sport utility vehicle at its main German plant in Wolfsburg -- securing some 1,000 jobs -- in exchange for pay rates below what VW workers normally earn.
Dieter Zetsche, who left U.S. arm Chrysler this month to run Mercedes, has stuck to the division's previous goal of doubling its operating margin to 7 percent by 2007, a target set by his predecessor who quit last month.
Mercedes profits have collapsed this year due to model changeovers, the strong euro, hefty losses at minicar brand Smart and spending to fix quality problems at crown jewel Mercedes-Benz.
é2005 Reuters Limited.
The good thing to come out of this is that due to the union agreement, these cuts will be voluntary and will include a separation package unlike most cuts. Still, I wonder how many of these people have a Plan B.
Namaste,
Brian
iWon Money & Investing
DaimlerChrysler cuts 8,500 Mercedes jobs
Wednesday September 28, 11:55 AM EDT
FRANKFURT (Reuters) - DaimlerChrysler on Wednesday offered staff at its premium Mercedes Car Group division voluntary redundancy packages that aim to cut 8,500 jobs in Germany over 12 months.
The world's fifth-biggest carmaker said the move would cost 950 million euros, to be offset by extraordinary income and efficiency gains.
It reiterated its forecast for a slight rise in 2005 operating profit excluding charges to restructure its Smart minicar business.
The Mercedes division employed around 105,000 staff at the end of last year, of which some 94,000 were in Germany.
"These headcount reductions are indispensable. They will contribute to significant improvements in the competitiveness of Mercedes-Benz through an increase in productivity," it said in a statement. "The measures will also contribute to the sustained safeguarding of production (in) Germany."
DaimlerChrysler and its works council struck a deal last year that guaranteed no worker at its German plants would be laid off through the end of 2011 in exchange for labor concessions that will generate 500 million euros in annual savings from 2007.
The jobs move underscores German carmakers' attempts to cut manufacturing costs and boost profitability while paying the highest labor costs in the global auto industry.
Volkswagen on Tuesday struck a deal with staff to make a new compact sport utility vehicle at its main German plant in Wolfsburg -- securing some 1,000 jobs -- in exchange for pay rates below what VW workers normally earn.
Dieter Zetsche, who left U.S. arm Chrysler this month to run Mercedes, has stuck to the division's previous goal of doubling its operating margin to 7 percent by 2007, a target set by his predecessor who quit last month.
Mercedes profits have collapsed this year due to model changeovers, the strong euro, hefty losses at minicar brand Smart and spending to fix quality problems at crown jewel Mercedes-Benz.
é2005 Reuters Limited.
posted by Brian | 9:38 AM
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