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Daimler plans to 'cut up to 15,000 jobs'

Jill Petzinger
Jill Petzinger, Germany Correspondent, Yahoo Finance UK
Daimler chief executive Ole Källenius is expected to present its ramped-up savings plan at its annual news conference on Tuesday. (Mandel Ngan/AFP via Getty Images)

Daimler (DAI.DE) is planning to increase the number of job cuts to some 15,000, according to Germany’s Handelsblatt newspaper.

The business newspaper on Monday cited unnamed company sources as saying the Mercedes-Benz owner will axe more jobs than first announced, as part of its drive to reduce costs.

Daimler had already announced in November that it would cut 10,000 jobs, which would amount to a cost saving of about €1.4bn ($1.5bn, £1.2bn) by the end of 2022.

Daimler had no comment on the increased job-cuts figure on Monday. Daimler chief executive Ole Källenius is expected to present its ramped-up savings plan at its annual news conference on Tuesday.

READ MORE: Investors sue Daimler for $1bn over diesel emissions cheating

The company will stop manufacturing its X-class pickup after May this year. Handelsblatt said it will further streamline its product lineup by ending production of the convertible and coupe versions of the S-Class.

Daimler has issued three profit warnings in the last year. In January, it posted a huge drop in operating earnings for 2019.

The fallout from the diesel emissions-cheating scandal continues to dog the company, which said last month that it is expecting over €1.1bn in additional charges for fines related to its diesels.

A group of institutional investors from the EU, US, and Asia launched a €900m lawsuit against Daimler in a German court at the beginning of the year. They are accusing the Mercedes-Benz parent of deliberately hiding the fact that it had installed illegal emissions-cheating software.

The suit claims Daimler failed to warn investors of the risks and costs involved, which amounts to a violation of capital markets law.

READ MORE: Daimler fined €870m in 'dieselgate' investigation in Germany