Luxury and sports car manufacturer Mercedes Benz is aiming to cut jobs for making more than 1billion Euros in savings by the end of 2022. The German car manufacturer with its headquarters in Stuttgart said that it was forced to make this decision because of new emission rules which are making it tough for the German automobile giant.
According to reports, as many as 1000 employees will lose their jobs due to this. Daimler who is the owner of the company has said that it wants to meet CO2 emission targets with the help of savings. He further added that with the emerging plug-in hybrid cars and electric cars in demand it is getting tougher for the company to stick to the operating cost budget.
Daimler although did not want to disclose about the levels from which people would be shown the door. But according to people within the company, the job cuts are expected to be from the management and administrative roles.
Even the chairman of the board of management Ola Kallenius said that in order to meet the CO2 emission requirements and increasing operating costs of the company it is required to main the highest form of efficiency within the company so that it could save money for these purposes in the near future. This also includes streamlining the process and reorganizes the company structure.
He said that doing so will ensure that the financials of the company will improve and so they have set a three-year plan till 2022.
Recently the company had been hit by the global slowdown, increasing competition from electric car manufacturers like Tesla and an increase in tariffs. The sales of its high-end cars have also dwindled over the last few years. Added to this the company was fined 870 million Euros for getting involved in a diesel emission scandal.