Daimler Truck to Cut 5,000 Jobs in Major Restructuring Plan

Daimler Truck has announced a significant restructuring plan aiming to cut approximately 5,000 jobs in Germany by 2030. This move is part of the company's broader 'Cost Down Europe' initiative, targeting cost savings of one billion euros across the continent. The job reductions will primarily affect the truck division, with locations such as Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth being impacted.

The company plans to achieve these job cuts through natural attrition, early retirement, and severance packages. This approach aims to minimize the social impact and avoid compulsory redundancies until at least 2034, as agreed with the works council. Despite the planned reductions, Daimler Truck remains committed to achieving organic revenue growth of 3-5% and boosting profitability.

The restructuring is driven by a strategic shift in production to countries with cost advantages. The company is focused on enhancing the profitability of its Mercedes-Benz Trucks brand, with a target of achieving an adjusted EBIT margin of over 12% by 2030. This move is essential for Daimler Truck to maintain its competitive edge in the global market.

The announcement has taken some by surprise, including the company's works council, which has expressed concern over the lack of consultation. However, Daimler Truck emphasizes that the restructuring plan is necessary to ensure long-term sustainability and efficiency in its operations. As the company navigates these changes, it remains to be seen how the planned measures will affect its workforce and overall business performance.