Daimler to cut 'thousands' of jobs by 2022 to fund electric shift

Luxury automaker Daimler on Friday said it was scrapping "thousands" of jobs to help fund the switch to electric vehicles, in the latest layoffs to hit the stuttering German car industry. The Mercedes-Benz maker said it wanted to save 1.4 billion euros ($1.5 billion) in staff costs as it joins rivals in investing billions in the greener, smarter cars of the future.

"Daimler aims to cut thousands of jobs worldwide by the end of 2022," it said in a statement after clinching a deal with labour representatives. The cull includes slashing management jobs "by 10 percent" around the world, Daimler added, amounting to some 1,100 positions.

"The automotive industry is in the middle of the biggest transformation in its history," Daimler said. "The development towards CO2-neutral mobility requires large investments," it added.

Along with other manufacturers, Daimler is scrambling to get ready for tough new EU emission rules taking effect next year, forcing it to accelerate the costly shift to zero-emissions electric cars and plug-in hybrids. The group, which employs 304,000 people globally, said the job cuts would be achieved through natural turnover, early retirement schemes and severance packages.