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DaimlerChrysler to cut 6,000 administrative staff

DaimlerChrysler will cut 6,000 administrative jobs by 2008, following the introduction of a new management model.

DaimlerChrysler said it hopes to reduce general and administrative (G&A) costs by €1.5 billion (£1.03bn) a year. These reductions will take place around the world.

"Over the last several years, we focused on our automotive business and started to streamline the core processes in our divisions," said Dieter Zetsche, chairman of the board of management of DaimlerChrysler.

"But to safeguard our future in this competitive global industry, we need to apply that same equation across all G&A functions with the added dimension of adapting to the needs of our business."

The earlier decision for Dieter Zetsche to serve a dual role as chairman of the board of management and concurrently as head of the Mercedes Car Group, will now be reflected in the organizational structure as well.

Board members Bodo Uebber and Rudiger Grube will also continue to have dual roles: Uebber for finance and controlling, as well as DaimlerChrysler financial services; Grube for corporate development (including information technology) and DaimlerChrysler's participation in EADS (European Aeronautic Defense and Space company).That will effectively reduce the number of board members to nine, from 12 a year ago.

The changes are set to be complete in three years. It is expected to require an overall expenditure of about €2bn (£1.37bn) from 2006 to the end of 2008.

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