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Daimler To Reduce Personnel Costs By 2022-end; Decides To Boost Free Cash Flow

Daimler (DDAIF.PK) said the expenditure needed to achieve the CO2 targets require comprehensive measures to increase efficiency in all areas through streamlining processes and structures. To this end, Mercedes-Benz Cars plans to save more than 1 billion euros in personnel costs by the end of 2022; with job cuts planned in both management and the indirect areas. To strengthen the free cash flow, investment in property, plant and equipment and in research and development will be capped at the 2019 level and be reduced in the medium term.

Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, said: "This will have a negative impact on our earnings in 2020 and 2021. To remain successful in the future, we must therefore act now and significantly increase our financial strength."

Daimler said it intends to increase free cash flow. The company plans to achieve stable net liquidity of more than 10 billion euros.

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