Mercedes-Benz eActros 600 production in Wörth / photo: Daimer Truck

Daimler Truck to cut 5,000 jobs despite electric vehicle upswing and rising sales

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Commercial vehicle giant Daimler Truck has announced far-reaching job cuts: around 5,000 roles are to be eliminated in Germany by 2030. Yet the company recorded strong sales growth in the second quarter of 2025 – particularly in the zero-emission vehicle segment. The apparent contradiction becomes clearer when viewed in light of market strategies and margin targets.

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The cuts were revealed at the company’s Capital Markets Day in Charlotte, North Carolina. According to Daimler Truck, the reductions will be achieved without compulsory redundancies and “primarily through natural attrition, partial retirement, and voluntary severance programmes.”

The background to this move is the “Cost Down Europe” austerity programme announced in spring 2025, through which the DAX-listed group aims to save over one billion euros in recurring costs. The Mercedes-Benz Trucks division – the backbone of the company’s European business – is particularly affected.

Sales rise sharply in Q2 despite job cuts

Strikingly, Daimler Truck reported a strong recovery in sales in the same quarter that the job cuts were announced. Its core brand, Mercedes-Benz Trucks, saw significant growth: 38,294 vehicles were delivered in Q2 – an increase of 14.5% compared to the first quarter (33,446 units).

Five German sites affected

The planned cuts affect all five of the company’s German sites: Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth am Rhein – Europe’s largest truck assembly plant. Areas particularly affected include administration, development, sales, and production.

Under a key agreement reached with the General Works Council in May, Daimler Truck has pledged not to implement compulsory redundancies in Germany until the end of 2034. The reductions are therefore to be implemented gradually and in a socially responsible manner.

The restructuring will also involve changes to the group’s global structure: since the beginning of 2025, the Chinese and Indian markets have been integrated into the Mercedes-Benz Trucks division – a move aimed at streamlining global operations while capitalising on regional synergies.

Group targets EBIT margin of over 12%

The cost-cutting programme is designed to achieve a clear target: raising the adjusted EBIT margin in the industrial business to over 12% by 2030 – a goal previously seen as attainable only under optimal market conditions. CEO Karin Rådström said in a statement that the programme is intended to “make the European business profitable and competitive in the long term.”

In addition to reducing personnel costs, the group also plans to cut spending on materials, IT infrastructure, administration, and research and development. According to Daimler Truck, the Mercedes-Benz Trucks brand must become “more resilient” to survive in global competition.

Industry-wide implications

With these job cuts, Daimler Truck joins a growing list of German industrial firms responding to a weaker market environment with sweeping restructuring measures. DHL, DB Cargo, Audi, and Bosch have all announced major cost-cutting and job reduction programmes for 2025 – some of which will directly affect the logistics industry.

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