Daimler Denies Plans to Fire Employees

Daimler AG refutes a report by Manager Magazin that the cost-cutting program at its Mercedes-Benz Cars unit will involve dismissing workers.

The German magazine cites unidentified company sources who say Mercedes will eliminate about 1,000 non-production jobs in sales, human resources and finance units.

The company notes that its labor contract bars firings until the end of 2016. Job cuts require a voluntary agreement with its unions. It isn't clear whether that contract applies to the jobs Manager describes.

Daimler says no personnel decisions have been made.

Mercedes' Fit for Leadership initiative aims to save €2 billion annually by the end of next year.