Daimler said it plans to cut thousands of jobs worldwide by the end of 2022 after it reached an agreement on its plans with labor unions.
In Germany, where the largest number of Daimler employees are based, workers will be offered severance payments and early retirement, Daimler said in a news release on Friday.
Daimler had said on Nov. 14 that it plans to reduce headcount at its Mercedes-Benz cars division to help manage the disruptive shift to self-driving and electric cars.
The job cuts are aimed at saving more than 1 billion euros ($1.1 billion) by the end of 2022. The cuts include eliminating 1,100 leadership positions worldwide, or about 10 percent of its management.
“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said on Friday.
In addition to the job cuts, employees will be offered the possibility to work fewer hours. There will be a squeeze on the use of temporary workers.
German automakers are intensifying their efforts to reduce costs to fund the heavy investments needed for electric cars and autonomous vehicle technologies.