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Daimler, the parent company of mercedes-benz, is embarking on a new round of cost-cutting as profits plummet. Foreign media reported that Daimler plans to lay off another 10,000 people by the end of 2025, after Daimler announced that it will lay off at least 10,000 people worldwide by 2022.

It is reported that this is part of Daimler Group CEO Ola K llenius 'plan to implement a new cost-reduction plan, and Daimler also plans to outsource IT services and reduce R & D positions.

Daimler's layoffs and cost-cutting plans were officially launched as early as last year. In November 2019, Daimler announced that it would lay off at least 10,000 people worldwide by the end of 2022, cutting employee expenses by about 1.4 billion euros. Daimler said it had agreed with unions on various cost-cutting and work-cutting measures, including expanding part-time retirement and severance schemes in Germany. In addition, the company will cut 10 percent of its global management positions and about 1100 management employees will be laid off.

Daimler plans to reduce investment costs in traditional areas while better transforming into emerging areas such as autonomous driving and electric vehicles.

According to the group's 2019 earnings report, Daimler's annual revenue was 172.7 billion euros, up 3% year-on-year, another record high; but Daimler Group's net profit fell from 7.6 billion euros in the previous year to 2.7 billion euros, down 64.5% year-on-year, making it the biggest drop in nearly a decade, with net profit attributable to shareholders of 2.4 billion euros.

In the first quarter of 2020, Daimler Group sales fell 17 per cent year-on-year to 644,300 vehicles; operating income fell 6 per cent to € 37.2 billion; and EBIT fell 78 per cent to € 617 million.

Under pressure from profits, Daimler has also further reduced its business. Daimler announced earlier that it had officially terminated its hydrogen fuel cell passenger car development program. Daimler admits that hydrogen cars are too expensive to make, about twice as expensive as comparable battery-electric cars. Meanwhile, German media reported that the convertible and coupe versions of Mercedes 'large luxury sedan S-Class would be cut, and the future of the B-Class sedan was also full of uncertainty.

In addition, in response to the impact of the coronavirus crisis, Daimler board chairman Ola Källenius and members of the company's management committee will cut fixed pay by 20 per cent from April 1 to the end of the year. Daimler said in a statement that other executives will receive a 10% pay cut over the next three months.

Daimler, which is under financial pressure, is responding to the crisis with a number of cost-cutting measures. Some analysts believe that Daimler will lose money in the second quarter of 2020.

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