Type
Internal restructuring
Country
Germany
Region
Location of affected unit(s)
Mannheim, Kassel
Sector
Manufacturing
Manufacturing Of Machinery And Equipment
Manufacture Of Machinery And Equipment N.E.C.
28.92 - Manufacture of machinery for mining, quarrying and construction

800 jobs
Number of planned job losses
Job loss
Announcement Date
26 November 2014
Employment effect (start)
1 January 2015
Foreseen end date
31 December 2021

Description

German automobile manufacturer Daimler announced to cut 800 out of 8,000 jobs within the next seven years. A total of 500 jobs will be made redundant in Mannheim where the company currently employs 5,100 people. In Kassel, 300 out of 2,900 jobs will be cut.

In Mannheim, where Daimler produces Mercedes engines, jobs will be cut in the logistics section as the company wants to outsource logistics to external providers in the future. According to the company, external providers are up to 50 pc cheaper.

The job reduction shall be implemented in a socially acceptable manner without operational dismissals. Most of the employees will leave the company due to retirement and their jobs will not be reoccupied.  

Recent restructuring cases at Daimler lead to the reduction of around 1,630 jobs in Germany (see Evobus 2012, Daimler Trucks 2013 and Mercedes-Benz 2013).   


Sources

  • 28 November 2014: FAZ
  • 26 November 2014: Mannheimer Morgen

Citation

Eurofound (2014), Daimler, Internal restructuring in Germany, factsheet number 77956, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/77956.