By Leftlane Staff
Tuesday, Sep 27th, 2005 @ 10:01 am

After just four weeks at Mercedes-Benz , chief executive Dieter Zetsche intends to eliminate at least 5,000 jobs to help revive profit at the Daimler Chrysler AG luxury car division. Zetsche, 52, left Chrysler on September 1st for a four-month stint at Mercedes before he takes over as chief executive officer of the parent company. Zetsche is tasked with turning around the faltering company. Mercedes reported its first quarterly loss in 13 years in the first quarter, and profit fell 98 percent in the second. “The cost discipline in the recent past wasn’t strict enough,” said Michael Raab, an auto analyst with Sal Oppenheim in Frankfurt. He estimates the cuts will cost DaimlerChrysler 150 million to 250 million euros and save 200 million to 250 million euros annually in reduced labor costs. Mercedes had 106,000 employees worldwide at the end of last year, according to DaimlerChrysler.

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