Dive Brief:

• Daimler Trucks North America is laying off 115 workers at a components and logistics plant in Gastonia, NC, The Charlotte Observer reported August 3.
• Daimler, citing a decline in orders, said it expects the cuts to be temporary, with workers having callback rights when production rebounds.
• The layoff follows the recent reduction of 180 jobs at the facility, and a Daimler announcement earlier in the year that it was cutting 1,200 jobs from two other North Carolina plants.

Dive Insight:

In May, Daimler Trucks, based in Stuttgart, Germany, lowered its 2016 earnings and sales outlook, noting “the sustained negative development of major truck markets,” with EBIT from ongoing business and unit sales expected to be significantly lower than strong 2015 levels.

"The situation of global truck markets has been difficult for several months and has worsened in recent weeks," the company said in the investor report announcing the decreased outlook. "In the NAFTA region, there has been no revival of orders received, especially in the heavy-duty segment." 

At the time, the company said it would intensify “efficiency actions,” including workforce adjustments in Brazil. The Charlotte Observer notes that Daimler has a record of expanding and reducing its workforce in response to market fluctuations.

Meanwhile, Daimler Trucks North America is developing a fully autonomous big rig, in which the driver only takes control during an emergency or for lane shifts. The truck is currently licensed for road tests in Nevada, Vox reports.

The widespread approval of the automated technology would surely boost Daimler sales, but Vox suggests it could also severely disrupt the trucking industry by decreasing the need for, or salaries of the 1.8 million people currently employed as truckers throughout the United States.