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Daimler announces 1,240 layoffs, including 600 at Freightliner plant

Published 06/06/2016, 07:30 PM
Updated 06/06/2016, 07:33 PM
© Reuters.  Daimler Trucks North America said it will eliminate 600 positions at a North Carolina plant this month

Investing.com -- Daimler (DE:DAIGn) Trucks announced plans to layoff 1,240 employees at a trio of factories throughout the U.S. and an additional one in Mexico, the company said on Monday.

The layoffs come several weeks after the German auto company lowered its full-year financial forecasts due to slowing sales. Of the job eliminations, approximately 800 positions will be terminated at two facilities in Gaston County, North Carolina. Daimler, which said last month that it expects full-year operating profit to be considerably below last year's revenues, anticipates a decline of 15% in medium and heavy duty trucks this year.

Daimler expects to layoff 600 Freightliner workers at a plant in Mount Holly, N.C., along with another 200 at another facility in Gastonia. Currently, there are approximately 1,450 employees at the plan in Mount Holly. The lay-offs are scheduled to occur from June 24 through July 1.

"These workforce adjustments are expected to be temporary and workers will have first rights to be recalled when production is able to sustain a higher build rate," the company said in a statement.

It comes days after a report from the National Automobile Dealers Association (NADA) showed that sales volume among its benchmark sleeper tractors at two prominent auctions remained dormant in May. As a result, NADA said prices for its 2011-2013 fleet fell sharply by 5.6% on average.

"The situation of global truck markets has been difficult for several months and has worsened in recent weeks,” the company said last month. "In North America, there has been no revival of orders received, especially in the heavy-duty segment."

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Shares in Daimler closed on Monday at €59.36, up 0.08 in 0.13% prior to the announcement.

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