Daimler Cuts 1200 Jobs, CEO Gets Extension

(RTTNews) - Daimler AG (DDAIF.PK)has agreed to extend Chief Executive Officer Dieter Zetsche's contract to 2019-end. The luxury auto and truck maker also announced plans to eliminate more than 1,200 employees at two of its North Carolina assembly plants due to sluggish demand for trucks.

"With the contract extension we are securing the continuity at the top needed for sustainable success," Chairman Manfred Bischoff said.

Zetsche, whose contract was due to expire this year, has been serving at the top position in Daimler since 2006. Zetsche will also remain head of Mercedes-Benz Cars unit.

Daimler's North America truck unit plans to cut 550 workers at its Cleveland, North Carolina assembly plant, while about 700 employees will also be laid off at Daimler's Mount Holly Plant.

The Mount Holly plant will only work for two shifts a day, down from three shifts earlier, while the Cleveland plant will work only for a single daily shift.