Daimler managers face axe
Friday 24 January 1997
The restructuring, which was approved by the company's supervisory board yesterday, cuts the number of business units from 35 to 23, abolishing middle and upper layers of management in the process. Daimler declined to comment on how many managers would be made redundant, or on estimates by analysts that possibly 1,600 senior jobs would be lost. All business units will report directly to the new 10-member board of management.
"As a result of the restructuring, the divisional managers will have a significantly larger measure of responsibility, and will be able to function as true entrepreneurs," the company's chairman, Jurgen Schrempp, said.
"This will encourage fast and flexible decision-making which will enable Daimler-Benz to secure and improve its competitive position in the international marketplace."
Analysts agree that the company's cumbersome structure has long been due for an overhaul, but remain divided about the wisdom of abolishing the autonomy of its most successful subsidiary. Mercedes-Benz was responsible for the bulk of the DM1.6bn (pounds 560m) profit estimated for 1996, carrying the burden for other units such as the aeronautics division Dasa which is barely breaking even.
Insiders suspect the fate of Mercedes was sealed by a long-running power struggle between its chairman, Helmut Werner, and Mr Schrempp, who emerges from the overhaul with greater control. Mr Werner resigned in disgust last week. A curt company statement issued yesterday "thanks him for his outstanding achievement to the group".
Analysts point out that whereas Mr Werner was a respected figure in the motor industry, Mr Schrempp, who will now have the final say over new models, worked his way up in Daimler Aerospace.
But there is no disputing Mr Schrempp's achievement in turning around Germany's industrial giant. After a record operating loss of DM5.7bn in 1995, Daimler-Benz was nudged back into the black last year.
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...