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Mercedes-Benz to axe more than 1,000 jobs in cost-cutting drive source: https://www.theguardian.com/business/2019/nov/14/mercedes-benz-axe-1000-jobs-cost-cutting-drive-electric-vehicles Move blamed on heavy cost of investing in electric vehicles just as traditional car sales slow Mercedes-Benz plans to save €1.65bn (£1.4bn) by cutting more than 1,000 jobs in the latest sign German carmakers are struggling to make big investments in electric car technology. Carmakers around the world are spending billions on developing battery-powered electric vehicles but at the same time sales of internal combustion engines are slowing in the face of economic weakness and scandals over emissions. Mercedes-Benz’s premium cars division will bear the bulk of the job cuts, its parent company, Daimler, said on Thursday, with cuts of €1bn from its wage bill expected by 2022. Management and contractors will be particularly affected, while the vans and trucks divisions will together cut €650m in staff and other costs. Mercedes-Benz’s premium cars division will bear the bulk of the job cuts, its parent company, Daimler, said on Thursday, with cuts of €1bn from its wage bill expected by 2022. Management and contractors will be particularly affected, while the vans and trucks divisions will together cut €650m in staff and other costs. “This will have a negative impact on our earnings in 2020 and 2021. To remain successful in the future, we must therefore act now and significantly increase our financial strength.” Daimler shares fell by 3% in early trading on Wednesday, to €51.97. It made earnings before tax of €10.6bn in 2018 but has given repeated profit warnings during 2019 and analysts forecast earnings before tax of about €6.3bn for 2019, according to average estimates from S&P Global Market Intelligence. As well as the global race for electrification, Daimler faces the prospect of further legal costs in relation to alleged breaches of emissions regulations. The scandal over diesel emissions cheating technology has also dented the rival German carmaker Volkswagen.