Reduction in personnel: Daimler Truck strokes 5,000 jobs – costs should be down

The commercial vehicle manufacturer Daimler Truck wants to become more competitive in Europe – and delete around 5,000 jobs in Germany by 2030. This was announced by the company on its capital market day in Charlotte (North Carolina). The last weakening brand Mercedes-Benz, which is particularly represented in Europe and Latin America, is affected. But what are the reasons for the savings program?

The weak economic environment in Europe and especially in Germany have been braking the DAX company for a long time. All over the group, paragraph 2024 decreased by twelve percent, in the first half of 2025 by almost seven. At Mercedes-Benz Trucks, the minus was much stronger. The brand sold significantly fewer trucks both in 2024 and at the beginning of the year. Sales stabilized something in the second quarter.

For a long time, Daimler Truck had consumed from the order boom of freight forwarders after corona pandemic. There were no problems with demand, but above all with the supply of parts such as electronics chips. In addition, there were significantly increased energy and freight costs. The picture has changed for some time: Many freight forwarders are waiting – and are not currently ordering new trucks. The order input decreased again in the first quarter.

Daimler Truck wants to become more competitive

This is also evident in the business figures: sales and profit went back in 2024, but also at the beginning of the year. At Mercedes-Benz Trucks, the minus was particularly clear in both cases. In the first quarter, sales fell by 15 percent, the operational profit by almost half. In other sectors, however, the group from Leinfelden-Echterdingen near Stuttgart works better.

Management around boss Karin Radström draws the conclusion from it: saving. “With the consistent implementation of our new strategic priorities, we will achieve a fundamental improvement in our financial performance, driven by our comprehensive efficiency program Cost Down Europe,” said CFO Eva Scherer.

The effort also has to do with the fact that the main competitors are much more profitable. During the presentation of Radström as a new CEO, supervisory board chief Joe Kaeser had announced the fight for them. “In the medium to long term, we not only want to be the largest truck provider in the western world”, but also leading to the margin, he said at the time. There is no reason why Daimler Truck should be foreseeable behind other providers. Kaeser referred to the operational margin of some competitors – i.e. the difference between proceeds and effort – of up to 15 percent.

Daimler Truck also wants to become more profitable through the savings program. There should be more profit from sales. In 2024, the company came up with 8.9 percent sales return for special effects. Radström is now targeting a value of more than 12 percent by 2030. The numbers refer to the industrial business, they do not include financial services.

At least one billion should be saved

In order to achieve this goal, the recurring costs should be permanently reduced by more than one billion euros. This is to be achieved at the latest in 2030. Both production and the headquarters, the administration, sales and development are affected. In addition to personnel costs, for example, expenses for material, administration, IT infrastructure as well as research and development are to be reduced.

Part of the production should therefore be shifted to “A country with cost advantages”. According to a company spokesman, the approximately 5,000 jobs are largely reduced through natural fluctuation and partial retirement. But targeted severance payments are also possible, it said.

Agreement on cornerstones in May

The DAX company had already agreed with the general works council at key points for the German truck locations in May. These also include socially acceptable personnel reduction. How many places of the manufacturers of trucks and buses wants to paint has not yet been known. In the paper, Daimler Truck and employee representatives have also agreed that there should be no operating terminations by the end of 2034.

The agreed measures apply to around 28,000 employees at a total of five German locations: Gaggenau, Kassel, Mannheim, Stuttgart and Wörth. The latter location in Rhineland-Palatinate is the largest assembly plant for trucks. The bus segment is excluded. Daimler Truck has a total of around 35,500 employees in Germany.

Works council chief: saving alone is not a strategy

Overall manager Michael Brecht now criticized the amount of the planned mining: “The communication of the company (…) surprised us.” In the negotiations, there was no talk of a specific number of places to be removed and nothing of the like was agreed. “It is annoying that the desire to please the capital market are only unnecessarily unsettled,” said Brecht.

The works council also wants a competitive company. However, saving alone is not a strategy. “We need good products and a clear growth strategy to be successful in the future,” said Brecht.

According to Daimler Truck is one of the world’s largest commercial vehicle manufacturers and employs more than 100,000 people. In the United States, the group leads the brands Freightliner and Western Star. The product range includes light, moderate and heavy trucks.