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Mercedes head Zetsche defends massive job-cutting plansPosted by Retirement on: 2005-09-29 09:16:30 in category:
Stocks & Securities [ Print | Permalink / 0 Comment(s) ] FRANKFURT (AFX) - Dieter Zetsche, head of DaimlerChrysler's Mercedes unit, defended the company's decision to cut 8,500 jobs in Germany over the next 12 months at a meeting with workers today at the Mercedes' main factory in Sindelfingen, near Stuttgart. A company spokeswoman said Zetsche had reiterated comments made in a letter to workers. In the letter, Zetsche wrote that the Mercedes management 'really did explore all possibilities in recent months, but that 'we can't ignore that we have a long and difficult road ahead until the Mercedes Car Group is really competitive again'. 'Along the entire length of the value chain, our costs are much higher than our best competitors,' he said, adding that Mercedes' capacity is also much higher than the market and competitive situation requires. The job cuts announced will be achieved through retirement packages and voluntary redundancies, as well as by not replacing people who leave the company. The severance packages will cost up to 950 mln eur, which the company hopes to raise via one-off gains from divestments and higher profits. Of the 8,500 jobs to be cut, the Sindelfingen plant will be the hardest hit with 3,100 cuts. A further 2,700 will be cut at the Bremen plant, while 1,100 jobs will be cut at the Stuttgart-Untertuerkheim plant. The remaining jobs will come from the marketing and production planning departments. Zetsche is set to become parent company DaimlerChrysler's chief executive on Jan 1. Homepage Other community sites http://www.business-business.biz Please support our sponsors: To design your custom retirement plan. http://www.retirement-plan.us For planning IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management- Nationally ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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