Mercedes and Daimler Truck: Huge savings plans with painful cuts!

Mercedes and Daimler Truck: Huge savings plans with painful cuts!

The German Automobilriese Mercedes has presented its savings program "Next Level Performance" (NLP), which begins in April and is to last until March 2026. Around 30,000 jobs in production, sales and administration are to be dismantled in order to save around five billion euros by 2027. For the employees, a “golden handshake” of up to 500,000 euros is offered, whereby the amount of severance pay depends on the position, the years of work and the salary. These measures were announced in a video message by Mercedes boss Ola Källenius and works council boss Ergun Lümali, as the Krone reported.

In order to avoid operational dismissals by 2035, the employees have given up a tariff increase, and the profit premium is reduced this year. Källenius explained that the company checked its business model and all cost categories in order to remain competitive in an insecure economic landscape.

austerity measures at Daimler Truck

At the same time, Daimler Truck has announced another savings program called "Cost Down Europe". The aim of this efficiency program is to reduce the recurring costs of the recently weakening truck division Mercedes-Benz Trucks in Europe by over a billion euros by 2030 at the latest, according to the DAX society. Personnel costs should also be affected, but according to CFO Eva Scherer, operational terminations are not up for debate in Germany by the end of 2029. This was reported by Voice

Daimler Truck has already started discussions with the works council about specific measures. Michael Brecht, the general chairman of the works council, said that the positions have so far been far apart. Despite a decline in sales by twelve percent worldwide last year and an operational result, which fell 15 percent to 4.7 billion euros, the company sees hope by increasing orders in the last quarter, where orders have risen by 15 percent. The company's focus is now on increasing efficiency and getting back into a growth strategy.