Daimler seeks to cut 10,000 jobs and $6.75 billion in cost

Daimler’s new boss Ola Källenius won’t officially start until May 22, but is already reportedly looking to decrease the company’s footprint with a reported cutting up to 10,000 jobs, according to Manager Magazin. The magazine states that Källenius is looking to make both Daimler and Mercedes-Benz more streamlined, and also seek a $6.75 billion in cost savings.

The magazine states that “Källenius will also reduce jobs, in the medium term maybe 10,000 from the current 298,700.”

Though no sources were provided for the information and Daimler announced earlier that it would be preparing “comprehensive” cost-cutting. The February declaration came on the heels of a number of uphill battles the German producer is facing, including the continued trade dispute with the United States, total car sales reduction, and the R&D costs of electric vehicles. However, Daimler recently invested $1.1 billion in a series of joint investments with BMW on future mobility services.

“The environment will remain extremely challenging in 2019. That’s why we must continue working intensively on our efficiency,” stated outgoing CEO Dieter Zetsche at the time.

Daimler is set to release the company’s first-quarter 2019 earnings this week on April 26.