FRANKFURT// – German luxury carmaker Mercedes-Benz is to cut jobs with the aim of making more than €1bn (£840m) in savings by the end of 2022, its owner Daimler has said.
The cuts – which reports say will lead to more than 1,000 jobs being lost – come as the carmaker faces challenges from new, tougher emissions targets.
Daimler said that meeting new CO2 targets required “high investments”.
It added that “the growing range of plug-in hybrids and all-electric cars is leading to cost increases”.
Daimler, which aims to make savings of more than €1.5bn across its group, did not say where the job cuts would fall. But they are expected to be in management and administrative roles.
“The cost burdens of meeting the [carbon dioxide] CO2 targets require comprehensive measures to increase efficiency in all areas of our company,” said Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz.
“This also includes the streamlining of our processes and structures.”
He added: “This will weigh on our results in 2020 and 2021. To be successful in the future, we must therefore act now and significantly increase our financial strength.”