Mercedes-Benz has secured an agreement with its works council to offer buyouts to employees and halve planned salary increases, as part of a broader cost-reduction strategy aimed at reviving earnings.

Key Takeaways

No redundancies—Production workers remain unaffected, and job security is extended until 2034.
Outsourcing ahead—Finance, HR, and procurement roles will be outsourced, with retiring workers not replaced.
Cost-cutting goals—The automaker aims to cut production costs by 10% by 2027, with a 20% reduction by 2030.

Read more news of this category here.

Industry Challenges & Workforce Shifts

Mercedes-Benz joins a growing list of European automakers making deep cost cuts in response to economic pressures and declining earnings. Germany’s powerful unions continue to resist job cuts, factory closures, and offshoring moves.

While the company hasn’t disclosed how many jobs will be affected, its cost-cutting ambitions align with a wider trend in Europe’s auto industry, where firms are balancing profitability with long-term workforce restructuring.

Check out our marketplace here.