Daimler, the German carmaker that owns Mercedes-Benz, has said it will shed at least 10,000 jobs worldwide as it seeks to fund the switch to electric cars.

According to Daimler’s personnel Chief Wilfried Porth, the number of jobs lost would be in the five figures.

The move has come following the announcement by rival Audi which has said it would cut 9,500 of its 61,000 jobs in Germany for similar reasons.

Daimler has declared the phase as the biggest transformation in the history of card industry.

“The development towards CO2-neutral mobility requires large investments, which is why Daimler announced in the middle of November that it would launch a programme to increase competitiveness, innovation and investment strength,” the firm said adding,

“Part of this programme is to reduce staff costs by around €1.4bn by the end of 2022 and, among other things, to reduce the number of management positions worldwide by 10%.”