Job cuts at Mercedes Car Group will end up costing EUR110m less than the originally planned EUR840m ($1.07 billion), DaimlerChrysler’s personnel director was quoted as saying on Tuesday.
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DC had earmarked EUR950m to cut 8,500 jobs at Mercedes in high-cost Germany and said last week that 9,300 Mercedes staff had already left the group or agreed to do so by the end of the year, Reuters reported.
“The actual burden on results is 840m (euros). That is the final sum for these 9,300,” Guenther Fleig reportedly told a news conference.
Reuters said he attributed the lower payout number to the mix of staff who left and the fact that around 800 took jobs elsewhere in the group or with affiliates such as aerospace group EADS.
The lower payouts come even though around 1,900 of the 9,300 took early retirement, about 700 more than the company had originally envisaged when it announced the plan in September 2005 as a way to boost Mercedes margins, the news agency added.
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