(autoinsidernews) - DaimlerChrysler has announced that job cuts at its Mercedes Car Group will end up costing $1.07 billion, which is $139.8 million less than the automaker's original estimates. DaimlerChrysler had budgeted $1.21 billion for the 8,500 jobs at Mercedes. Last week, the automaker announced that 9,300 Mercedes staff had already left or will do so by the end of the year.
Guenther Fleig, the group's personnel director, said the lower payout is the result of the mix of staff who left and that around 800 took jobs elsewhere or with affiliates. The lower payouts come even though about 700 more workers than expected took early retirements, reports Trend.
DaimlerChrysler said in January it was planning to cut up to a fifth of its white-collar staff over the next three years. While these cut are expected to cost around $2.54 billion by the end of 2008, they will save $1.27 billion a year.