LAYOFFS ANNOUNCED FOR CLOSE TO 20,000 EMPLOYEES; DETAILS LISTED

Amidst the layoff season, the automobile giant Dialmer announced layoffs as a step to effective cost-cutting measures. The recent announcement from Dialmer listed that the company has planned to layoff 10,000 jobs by 2022. One of the primary reasons for the job cuts is to allocate funds for the production of electric vehicles which is seen as the “the biggest transformation in history” for the automotive industry.

Bearing a workforce of over 300,000, Dialmer's recent announcement would reduce the workforce by 3% including 10% of management positions. Reports say that the layoffs would save 1.4 billion euros ($1.54 billion) by 2022.  The information has been passed to the employees via an email by Wilfried Porth, a labor-management board member for Daimler.

Parallelly, other German car manufacturers, Audi and Volkswagen’s luxury car unit announced that it would be cutting 9,500 jobs (1 in 10 employees) by 2025. Similar to Dialmer, the decision also has an objective to shift focus into electric car production. On the whole, close to 20,000 jobs were on the verge of getting scrapped in the German Automotive industry.

Earlier, the German Association of the Automotive Industry or VDA mentioned that 70,000 jobs were at risk. VDA represents Daimler, BMW and Volkswagen.