EMCC European Monitoring Centre on Change

Daimler

Company/Organisation:
Daimler

Geographic Location

Country: Germany
Region: Stuttgart, Stadtkreis; Stuttgart; Baden-Württemberg
Location of affected unit(s): Untertürkheim

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 19000

Employment Effects

Announcement Date: 23-09-2020
Planned Job Reductions min: 4000
Planned Job Reductions max: 4000
Type of Restructuring: Internal restructuring
Employment Effect Start: 23-09-2020
Foreseen End Date: 01-01-2025
Other Job Reduction Measures: 4000

Additional Information

As announced on 23 September 2020, the German car manufacturer Daimler will be cutting 4,000 jobs at its site in Stuttgart-Untertürkheim by 2025 due to internal restructuring. According to insider information, costs at the plant are too high and the manufacture of traditional combustion engine units will decrease in the forthcoming years as the company pivots to electric cars. Since there is a protection against dismissals for all Daimler employees until 2029, the job reduction will mainly be accomplished via voluntary programmes, part-time retirement programmes or severance payments. The works’ council strongly opposes the company’s plans and intends to save as many jobs as possible.

Furthermore, Daimler as been hit hard be the COVID-19 crisis, suffering major losses.

Currently, Daimler has 19,000 employees at Untertürkheim.

Sources: