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, as part of a wider cost-cutting drive aimed at reviving earnings. The company plans to reduce production costs by 10% by 2027 and double that by 2030, with redundancies ruled out for production workers. Management has agreed to extend a job security guarantee until the end of 2034.
- This move highlights the increasing willingness of car manufacturers to adopt cost-cutting measures in an effort to regain profitability, potentially leading to a more challenging environment for employees.
- How will Mercedes-Benz's focus on reducing costs and streamlining operations impact its ability to invest in research and development, which has been a key driver of innovation in the automotive industry?