Mercedes-Benz Maker to Cut 20,000 Jobs

Daimler-Benz, maker of the prestigious Mercedes cars, plans to trim 20,000 jobs over the next two years, a newspaper Tuesday quoted Mercedes’ chief as saying.

The staff cuts would be the first in Mercedes’ history. Mercedes, based in Stuttgart, employs about 180,000 people in Germany.

Werner Niefer, president of the Mercedes-Benz subsidiary of the Daimler-Benz conglomerate, was quoted as telling Die Welt that the reductions would be made through attrition and early retirements.

He was quoted as saying the cutbacks are part of a package aimed at making Mercedes more competitive with Japanese auto makers. Other planned measures include more efficient management of machine operation times, Die Welt said.

Niefer was quoted as saying much of the job reductions will be made in the administrative area, where they will make a minimal impact on customers.

His remarks came amid tough wage negotiations between German car makers and IG Metall, the metal workers’ union. The German auto industry and other businesses reliant on steel are expected to face warning strikes beginning today.