BERLIN, July 8 (Xinhua) -- Daimler Truck said on Tuesday it plans to cut around 5,000 jobs in Germany by 2030 and to relocate parts of its production to countries with lower costs, as the company looks to reduce expenses and strengthen competitiveness in Europe.
The job reductions will primarily be achieved through natural attrition and early retirement, with targeted severance packages also under consideration, the German commercial vehicle manufacturer said.
The cost-cutting drive comes amid sluggish economic conditions in Germany and rising energy and logistics costs. Group sales dropped 12 percent in 2024 and fell another 8 percent year-on-year in the first quarter of 2025. Demand for its Mercedes-Benz truck brand, which focuses on Europe and Latin America, declined even more sharply.
Sales have also weakened in its North American market. Analysts fear that U.S. tariffs on imported vehicles and materials could add further pressure.
To offset these headwinds, the truckmaker aims to cut costs in Europe by more than 1 billion euros (1.17 billion U.S. dollars) by 2030 under its "Cost Down Europe" efficiency program. As part of the plan, production will be partially relocated to "countries with cost advantages," the company said.
The restructuring will affect five German plants employing roughly 28,000 workers. Daimler Truck has about 35,500 employees in Germany overall. The bus division will not be affected by the cuts this time.
Achim Puchert, a board member responsible for the Mercedes-Benz Trucks and BharatBenz, said that Mercedes-Benz Trucks will make greater use of its global workforce, including teams in countries such as China that offer both talent and cost benefits. (1 euro = 1.17 U.S. dollars)
