DaimlerChrysler is reporting today that the previously planned job cuts at the Mercedes Car Group are going better than expected.  Already, approximately 5,000 employess have signed retirement contracts or agreed to leave the company.

The voluntary redundancy program, which aims to reduce the German workforce by 8,500 employees, began in October 2005 and was expected to take 12 months to complete.  According to Günther Fleig, DaimlerChrysler Board of Management Member for Human Resources and Labor Relations Director: “Our expectations have been confirmed. Following this interim status, we continue to consider it realistic that we will successfully achieve the targeted personnel reductions."

Despite the early success of the planned job cuts, DaimlerChrysler has still failed to comment as to whether or not we can expect to see any additional voluntary redundancy programs coming in the near future.

We'll keep you posted if we hear anything new.  For more info, you can check out the full press release below.


OFFICIAL PRESS RELEASE


Interim Status Of Personnel-Reduction Program At The Mercedes Car Group

Stuttgart, Jan 05, 2006

DaimlerChrysler AG has drawn up an interim status of the voluntary personnel-reduction program at the Mercedes Car Group. By the end of the year 2005, approximately 5,000 employees of the Mercedes Car Group had signed retirement contracts or had already left the company. This means that around 60% of the twelve-month target has been achieved just three months after starting the voluntary program. Some 1,100 of the contracts are for early retirement. The cost of implementing the program is within the specified financial scope.

The program of voluntary personnel reductions, which started in October 2005, has the goal of reducing the workforce of the Mercedes Car Group in Germany by 8,500 jobs by the end of September 2006.

Günther Fleig, DaimlerChrysler Board of Management Member for Human Resources and Labor Relations Director, stated: “Our expectations have been confirmed. Following this interim status, we continue to consider it realistic that we will successfully achieve the targeted personnel reductions on the basis of the employment pact ‘Future Safeguarding 2012’”.

According to Mr. Fleig, the personnel-reduction program must continue unchanged in order to improve the competitiveness of the Mercedes Car Group. “Although the processes are not easy for all of the persons involved, this voluntary program is the best way to reduce the size of the workforce in a socially acceptable manner. The high rate of participation demonstrates the acceptance of the program.”

Copyright © 2005, DaimlerChrysler AG