Daimler says it will cut more than 10,000 jobs over the next two years as the owner of Mercedes will add another disaster to a devastating chain of job losses in the German automobile industry.

In his report in the Financial Times, Joe Miller said the cost of investing in electric cars and the pressure of lower sales and profits are pushing for a comprehensive overhaul of the entire sector, with 50,000 jobs announced so far this year.

German companies were the hardest hit, with auto parts company Continental in September announcing 20,000 jobs at risk, while Audi announced 10,000 cuts this week.

The writer quoted Daimler Human Resources board member Wilfried Porth as saying the job cuts would reach "a low five-digit number", but declined to give an accurate estimate. The automaker is witnessing the biggest transformation in its history, the company said.

Daimler had already announced that one-tenth of the directors had been excluded because it sought to save 1.4 billion euros in staff costs, but would now give up the services of thousands of administrative staff as well, bringing the total losses to more than 10,000 international staff.

Criticism
As Europe's biggest economy suffers from a slowdown in the dominant automotive sector, the German government announced on Friday a new industrial strategy, including measures to protect key technologies from foreign acquisitions.

The writer added that the country's car pressure team, known as the German Automobile Industry Association, criticized the move and warned it would restrict entrepreneurship.

The German Automobile Industry Association has already warned that 70,000 jobs will be at risk across the country in the next few years as companies grapple with the decision to move away from producing cars with combustion engines.

The French company BSI and Italy's Fiat Chrysler are merging to increase their investment in electricity, while Volkswagen and Ford have pooled some development resources.

Europe's largest economy suffers from slowdown in dominant car sector (Reuters)

Last November, Daimler warned that it would make much less profit for at least two years, citing the double threats posed by the Brexit and tariffs, as well as the struggle to produce enough battery-powered cars to meet EU targets to reduce carbon emissions.

If Daimler fails to achieve 100 grams of CO2 per kilometer by 2021 across the entire fleet, it could face fines of up to 1 billion euros from Brussels.

Job Guarantee
The author pointed out that the latest cuts do not include assembly line employees. Daimler had previously agreed to guarantee jobs with workers' representatives, a decision that would protect Germany's operational staff from compulsory dismissal until the end of 2029.

The cost of employees at Mercedes alone is estimated at 13 billion euros a year.

Daimler said it would reduce its staff in a socially responsible manner and would use natural fluctuations to exclude jobs that had become vacant.

The automaker, which employs 130,000 people directly in Germany, asserts that voluntary exit will also be offered to retirees.

The company said it would seek more savings by offering the option of reducing weekly working hours to its current workforce.