DaimlerChrysler to chop 6000 administrative jobs, trim management by 20%

German-US auto giant DaimlerChrysler said it planned to axe up to 6,000 general and administrative jobs over the next three years. The cuts, which represented about one fifth of the car maker's general and administrative (G and A) workforce, would be implemented worldwide and were aimed at helping cut costs by 1.5 billion euros (1.8 billion dollars) each year in future, DaimlerChrysler said.

The announcement came after a report in the Wall Street Journal Europe which had said that DaimlerChrysler was planning to trim its management ranks by about 20%. The newspaper had said that the prestigious Mercedes division would take the brunt of the cuts. The aim of the management shake-out was believed to be a signal from the group's new chief executive Dieter Zetsche that sacrifices were being demanded not only from the grass-roots workforce but from white-collar staff as well. Zetsche, who took the driving seat at DaimlerChrysler on January 1, recently announced plans to eliminate 8,500 jobs at Mercedes plants across Germany.

business-times.asia1.com.sg :

DaimlerChrysler will cut its bloated management by up to a fifth over the next three years, chopping around 6,000 jobs as a way to boost efficiency, the world's fifth-biggest carmaker said yesterday. It is the second car company to announce big cost cutting in as many days. On Monday, Ford Motor Co announced a long-awaited revitalisation plan which includes idling 14 facilities and cutting 30,000 jobs.

Premium division Mercedes Car Group, normally the group's cash cow but which struggled last year, is already in the process of cutting 8,500 mostly manufacturing jobs as a way to boost margins.

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