Mercedes-Benz to Cut Headcount, Lower Pay Increases Amid Cost-Cutting Drive.
Mercedes-Benz has won agreement from its works council to offer buy-outs to staff and reduced planned salary increases by half, part of a wider cost-cutting drive as the carmaker battles to revive earnings. The company plans to reduce production costs by 10% by 2027 and double that by 2030, beyond an ongoing plan launched in 2020 to reduce costs by 20% between 2019 and 2025. This move reflects the growing pressure on the European auto industry to adapt to changing market conditions and technological advancements.
- The widespread adoption of cost-cutting measures among major automakers raises questions about the long-term sustainability of such strategies, particularly in a sector where investment in research and development is crucial for staying competitive.
- How will Mercedes-Benz's aggressive cost-cutting drive impact its ability to invest in electric vehicle technology and other innovative initiatives that could shape the future of the industry?