The automaker that owns Mercedes-Benz is planning to reduce 10,000 jobs by 2022 to divert the funds towards production of EVs.
Daimler has joined the list of latest automakers who have announced a round of layoffs in an effort to cut costs and drive resources towards the production of electric vehicles.
Daimler will be laying off about 10,000 employees by 2022 in order to become future-ready for the industry’s “biggest transformation in history.”
The automaker also happens to own the coveted brand, Mercedes-Benz, is planning to reduce about three percent of its workforce which would include the reduction of management positions by 10 percent. Thus, the company plans to save about 1.4 billion euros ($1.54 billion) by 2022.
Other companies such as Audi, Volkswagen’s luxury car arm, announced that it plans to cut about 9,500 jobs as it moves towards concentrating on electric vehicles. These jobs will be cut by 2025.
The shift towards electronic vehicles has led to a global slump in auto sales.