DaimlerChrysler to cut 6,000 jobs
Auto manufacturer plans to trim management up to 20% over next three years; program will cost $2.5B.
NEW YORK (CNNMoney.com) - DaimlerChrysler will implement a new management structure that will include cutting 20 percent of its general and administrative staff, the world's fifth-biggest car manufacturer said Tuesday.
The cuts are expected to reduce the company's global white-collar jobs by about 6,000 over the next three years and result in a $1.2 billion a year savings.
"(Administrative) costs are expected to be reduced by 1.5 billion per year. The net effect of Tuesday's announcement will be (a savings of) 1 billion per year," the automaker said.
"Our objective in taking these actions is to create a lean, agile structure, with streamlined and stable processes that will unleash DaimlerChrysler's full potential," CEO Dieter Zetsche said in a statement.
Daimler will also move its headquarters in May from outside Stuttgart, southern Germany, to Untertuerkheim, to be closer to production.
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