Daimler Truck to Eliminate 5,000 Positions
In a bid to boost profitability and remain competitive, Daimler Truck, one of the world's largest commercial vehicle manufacturers, has unveiled a significant restructuring plan called "Cost Down Europe." This ambitious initiative aims to reduce recurring costs in Europe by over one billion euros by 2030, targeting multiple German sites, including Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth am Rhein.
The restructuring will impact various areas, including administration, development, sales, and production. However, Daimler Truck has committed to avoiding compulsory redundancies in Germany until at least 2034. The company plans to implement layoffs gradually through voluntary means such as natural attrition, partial retirement, and severance programs.
The cost-cutting efforts are driven by the need to increase profitability. Daimler Truck aims to raise its adjusted return on sales from the current 8.9% in 2024 to over 12% by 2030. This ambitious goal is expected to be achieved through restructuring and efficiency gains.
The "Cost Down Europe" program also includes reductions in other expense categories, such as materials, administration, IT infrastructure, and research and development. Additionally, there is a strategic plan to examine relocating some production volumes abroad from Mercedes-Benz Trucks to achieve further cost efficiencies.
This restructuring comes alongside a push for closer integration of regional teams in China and India, aiming to reduce product complexity and leverage global scale through the modular "Mercedes-Benz Trucks ONE" approach.
The works council of Daimler Truck, which represents the employees, has expressed mixed feelings about the announcement. While they acknowledge the need for cost savings, they have emphasised that a competitive company needs good products and a clear growth strategy. The council has also extended the future security of jobs until 2035, excluding dismissals for operational reasons.
Despite the job cuts, Daimler Truck remains committed to its workforce in Germany. The chairman of the works council in Wörth, Thomas Zwick, has stated that no employee will have to fear losing their job. The truck division of Daimler Truck, which currently employs around 28,000 people, is affected by the job cuts.
The sluggish economic environment in Europe, particularly in Germany, has been holding back Daimler Truck. Sales for the company fell by 12% in 2024 and by nearly 7% in the first half of 2025. Daimler Truck has announced its intention to relocate more than 20% of its European truck production to a country with lower costs.
In total, Daimler Truck has around 35,500 employees in Germany. The job cuts will affect employees in administration at all five truck sites of Daimler Truck in Germany. Severance payments for administrative staff have already been agreed upon in a joint paper by the company management and the works council.
As Daimler Truck navigates these challenging times, it is clear that the company is pursuing a cautious but firm restructuring to improve profitability in Europe while balancing workforce reduction with social responsibility. The future of Daimler Truck in Europe remains a topic of interest as the company continues to implement its restructuring plan.
The restructuring plan at Daimler Truck, named "Cost Down Europe," involves decreasing costs in various business sectors such as administration, development, sales, and production, with a focus on finance and industry.
In order to boost profitability and raise its adjusted return on sales, Daimler Truck aims to implement efficiency gains and restructuring across multiple expense categories, including materials, IT infrastructure, and research and development.
