DaimlerChrysler to cut 8,500 jobs

FRANKFURT, Germany (AP) – German-American automaker DaimlerChrysler AG said Wednesday it will cut 8,500 jobs at its Mercedes Car Group in a bid to return the troubled brand to profitability.

The company said the cuts, which will take place in Germany, will come through voluntary termination agreements over the next 12 months and result in charges of $1.11 billion.

DaimlerChrysler said the charges will be posted in the fourth quarter and aren’t expected to hamper the company’s outlook.

The automaker had said previously that it expects to beat last’s year operating profit of 5.8 billion euros.

The announcement from the company’s headquarters in Stuttgart came after Dieter Zetsche, who took control of Mercedes this month and is set to become chief executive of DaimlerChrysler at the beginning of 2006, outlined the plan to the company’s supervisory board in the United States earlier in the day.