Category: LAYOFFS

Audi to Cut 9,500 Jobs to Boost Profit

Volkswagen AG VLKAF subsidiary Audi AG has reached an agreement with its work council to lay off up to 9,500 employees by 2025, the company announced on Tuesday.

‘Demographic Curve’

The cuts will mostly happen “along the demographic curve” –  through employee turnover or an early-retirement program.

Audi said that the layoffs would save the company $6.6 billion that it will use for “electrification” and “digitalization” in its future projects.

The luxury carmaker plans to create 2,000 new “expert position” for electric vehicles. It will prioritize filling these positions from within the company and look outward to fill any remaining roles.

Work Council Enforces Favorable Terms For Employees

As the Wall Street Journal noted, Germany’s laws require companies to fill half of the non-executive supervisory board with non-management level employees — giving them a better bargaining position when it comes to job cutting.

The terms that the Audi’s Work Council agreed to require Audi to guarantee that there would be no layoffs in the next ten years, i.e., until November 29, 2029.

CONTINUE @ BENZINGA

Mercedes-Benz owner Daimler to cut 10,000 jobs worldwide

Luxury automaker Daimler said Friday it would scrap at least 10,000 jobs worldwide, the latest in a wave of layoffs to hit the stuttering German car industry as it battles with a costly switch to electric.

The Mercedes-Benz maker said it wanted to save 1.4 billion euros ($1.5 billion) in staff costs by the end of 2022 as it joins rivals in investing huge sums in the greener, smarter cars of the future.

“The total number worldwide will be in the five-digits,” Daimler personnel chief Wilfried Porth said in a conference call about the job cull.

He declined to give a more detailed breakdown.

The group said in an earlier statement that “thousands” of jobs would be axed by the end of 2022, after clinching a deal with labour representatives.

The cull includes slashing management jobs “by 10 percent”, Daimler said, reportedly amounting to some 1,100 positions around the world.

“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said.

“The development towards CO2-neutral mobility requires large investments,” it added.

Along with other manufacturers, Daimler is scrambling to get ready for tough new EU emission rules taking effect next year, forcing it to accelerate the costly shift to zero-emissions electric cars and plug-in hybrids.

The group, which employs 304,000 people globally, said the job cuts would be achieved through natural turnover, early retirement schemes and severance packages.

CONTINUE @ IBT

Neiman Marcus Cuts More Jobs…

Neiman Marcus eliminated fewer than 100 jobs, both through layoffs and by not filing vacant or requested positions, the Dallas Morning News reported last week.

More than half of the positions came from eliminating unfilled jobs, the Dallas-based company confirmed with the Morning News.

The luxury retailer made the cuts last Wednesday, the DMN reported, and those who lost jobs received severance and outplacement services.

CONTINUE @ BIZ JOURNAL

Rolls-Royce to trim 4,600 jobs…

Rolls Royce

According to this Fox Business report, jet engine maker Rolls-Royce will be cutting 4,600 jobs to save face. The iconic company has taken a beating over the last few months as their jet engines aren’t meeting the standards airlines anticipated.

Britain’s Rolls-Royce, the jet engine maker, said cutting 4,600 jobs will save the company $536 million a year.

It is the latest attempt by CEO Warren East to simplify the business and generate more cash, according to Reuters.

The job cuts announced on Thursday come at a time when the company has been hit by problems with some jet engines that has upset airline clients.

Parts in some versions of the Trent 1000 engine, which powers the Boeing 787 Dreamliner jet, are not lasting as long as expected, forcing the company to ground planes to carry out inspections.

End Of an Era: Harley-Davidson to Close Kansas City assembly plant, about 800 workers to lose jobs

It looks like we’re approaching the end of an era as iconic motorcycle maker Harley-Davidson has been quietly right-sizing its business. According to this Kansascity.com report, Harley will be closing their KC assembly plant leaving almost 800 workers without jobs. This is only the beginning.

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