DaimlerChrysler to Axe 6,000 White Collar Jobs

26 January 2006

Like the proverbial new broom, carmaker DaimlerChrysler's recently appointed ceo Dieter Zetsche has ordered a clearout in the name of efficiency.

He wants to lose 6,000 managerial posts throughout the German-headquartered company, saving around €1.5 billion ($1.84bn; £1.03bn) a year.

The move will cost the world's fifth biggest automaker €2bn over the next two years and follows Zetsche's announcement that 8,500 factory jobs will be axed within the company's Mercedes marque.

Zetsche describes this latest round of layoffs as part of the company's broader effort to quash squabbling among senior executives, reduce complexity and eliminate redundant jobs. He adds: "We have started an efficiency programme in all our divisions. Our aim is to create a lean, agile structure."

Most of the doomed jobs are based in Germany, but around 25% are in the USA. Departments affected include accounting, auditing, personnel and strategic-planning.

The announcement follows the Ford Motor Company's revelation that it is to eliminate around 30,000 jobs and close fourteen plants in North America [WAMN: 25-Jan-06] as it struggles with falling market share.

Data sourced from Wall Street Journal Online; additional content by WARC staff