Labor tensions are heating up in Germany, with the newest problem expected at Daimler AG. Its original plan to cut 10,000 jobs was too optimistic according to company officials, who are now pushing for an even deeper reduction in the number of its employees. In a recent interview with the DPA news agency, HR director Wilfried Porth was unable to give a specific figure, but said it was higher than 15,000. But he complained that discussions with the works council were not resulting in any progress on how to proceed. Some type of agreement will have to be found, however, as more than half of the company’s employees are represented by unions and works councils. At the end of 2019, the company announced its intentions to reduce labor costs by €1.4 billion, but the goal now appears to be at least twice that figure. The company’s IT operations, currently run by a team of 2,000, may be outsourced.
