Electric models see strong demand

Mercedes is experiencing strong demand for its new electric models, including the CLA, GLC, GLB, and GLA, with orders leading to delivery delays until April 2027.

Workforce reduction targets temporary staff

The company is seeking to reduce the number of temporary workers in its German factories by several thousand, with about 3000 such workers currently employed in locations including Sindelfingen, Bremen, and Rastatt.

Cost-cutting aims for significant savings

According to reports, Mercedes aims for about 800 million euros in annual savings in Germany through a wide productivity program, though the company has not confirmed these figures. A spokesperson emphasized that standard-contract employees are not targeted by this measure.

Unions and councils oppose the cuts

The works council and the powerful union IG Metall are opposed to the reductions, arguing that temporary workers help maintain production lines and that reducing their numbers would place more pressure on remaining employees.

Additional cost-saving measures in place

The push for cost savings includes the relaunch of a voluntary departure program in Germany, which targets non-production roles and could see up to 500,000 euros in severance pay for senior managers. The previous program resulted in about 4,000 employees leaving.

Profit decline drives cost-cutting efforts

The group's profit nearly halved in 2025, from 10.4 to 5.3 billion euros, attributed to declining profits, an unprofitable Chinese market, and American tariffs affecting exports.

Production flexibility under scrutiny

Despite increased production at factories in Bremen, Rastatt, and Kecskmét, Hungary, and the Kamenz battery plant, the reduction in temporary workers raises concerns about maintaining production flexibility and the potential for overburdening remaining staff.