FRANKFURT -- Daimler will cut 1,100 leadership positions worldwide, or about 10 percent of its management, reports said.
The job cuts are part of sweeping cost reductions planned by new CEO Ola Kallenius, Bloomberg and the Sueddeutsche Zeitung said on Friday.
According to an internal letter that was sent to employees by works council chief Michael Brecht and his deputy Ergun Luemali, labor representatives are willing to discuss buyout offers for some employees.
The letter, seen by Bloomberg, stressed conditions must be good and acceptance would have to be based on a voluntary decision.
Daimler has signed a labor pact that rules out forced layoffs in Germany through 2030.
The labor representatives acknowledge the need for targeted measures to improve the automaker's financial situation amid a seismic industry shift toward electric and self-driving cars.
However they "categorically declined" management's proposals to cut personnel costs by skipping scheduled pay raises next year or delaying individual salary hikes.
Kallenius, who succeeded veteran CEO Dieter Zetsche in May, plans to map out his strategy at a capital market day next Thursday in London, followed by a meeting with investors in New York on Friday.
Following a dismal start into the year that forced Daimler to cut its earnings targets for 2019, global deliveries of Mercedes-Benz cars have improved in the past few weeks.
The recent car sales recovery offers some relief, but at the same time demand for Daimler's commercial vehicles is softening amid a clouded economic environment.
"We are in a constructive dialog with labor representatives, but won’t comment on speculations by the works council," a Daimler spokesman said in an emailed statement.
"Extensive countermeasures" are required to retain competitiveness and tackle the transformation of the mobility sector and the company is analyzing costs across all operations, the spokesman said.
Reuters and Bloomberg contributed to this report