Daimler to lay off at least 10,000 workers worldwide, Volvo, Paccar, and Cummins are next to cut the jobs
Story by:@ FreightWaves
Daimler to lay off at least 10,000 workers worldwide, including the US. Navistar, Volvo, Paccar, and Cummins are next to cut the jobs.
Daimler AG (OTC: DDAIF) reported that it is another step closer to finalizing plans to “streamline the company” in a Nov. 29 press release. The company announced that it has reached an agreement with employee representatives to “reduce staff costs and employment in a socially responsible manner.”
The Stuttgart, Germany-based vehicle manufacturer reported that it has reached an agreement on some key items with labor representatives, known as the General Works Council. In sum, the plan is aimed at cutting “thousands of jobs worldwide by the end of 2022,” a number likely to be in the range of 10,000 employees.
In October, Daimler Trucks cut 900 jobs in the U.S. and 250 in Mexico in response to declining orders for North American commercial vehicles.
Class 8 Orders – SONAR: ORDERS.CL8
Daimler’s workforce reduction plan appears to be fairly robust, affecting potentially more than 10,000 employees and 1,100 management positions.
This announcement is one of several announcements from original equipment manufacturers (OEMs) in recent weeks.
Navistar International Inc. (NYSE: NAV) announced that it would cut production by 15%, but didn’t disclose any impacts to headcount. The company was the first truck OEM to announce curtailments in production, reversing a similar 15% production increase in 2018.
Volvo Trucks North America, Volvo Group of AB Volvo, (OTC: VLVLY) said that it plans to lay off 700 workers in January. Paccar Inc. (NASDAQ: PCAR) reported that it was scaling back production by 6% to 8% at the end of the third quarter, prompting the company to lay off 100 workers at a Kenworth facility in November. Engine maker Cummins, Inc. (NYSE: CMI) was the most recent OEM to announce cuts. The company said that it planned to lay off some 2,000 exempt employees in the first quarter of 2020.
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Source and credits: freightwaves.com // iTrucker / Mario Pawlowski