Daimler Truck plans to axe approximately 5,000 jobs in its home country by 2030, the German firm announced on Tuesday.
The cuts are part of an efficiency drive to reduce recurring annual costs by more than €1 billion by 2030, the firm said in a statement. Savings will also be made on production expenses.
“The company will utilise natural attrition and expand early retirement options to reduce positions in a socially responsible manner, as well as offer targeted severance packages,” said Daimler Truck. Natural attrition means reducing staff by not replacing employees who leave voluntarily.
“The Board of Management and the general works council have jointly agreed on key points to improve efficiency and created clear future perspectives for the locations in Germany,” a spokesperson added in a statement shared with Euronews.
Daimler Truck, which is holding its Capital Market Day on Tuesday in North Carolina, also released financial updates on Tuesday.
In a statement, the firm projected organic revenue growth of 3% to 5% per year until 2030 in its industrial business.
It said this would be supported by an uptick in the North American vocational truck market. The company also forecasted growth for zero-emission vehicle sales in Europe, and pointed to opportunities in India and the defence sector.
Daimler Truck predicted an adjusted return on sales of more than 12% in its industrial business through 2030. Free cash flow is expected to increase by 50% by 2030 compared to 2024.
“At Mercedes-Benz Trucks, our focus is first and foremost on our customers. We want to deliver the products and services that make their business more successful – today and in the future. Therefore, we are focusing on three strategic levers: restructure, leverage and grow,” said Achim Puchert, Member of the Board of Management of Daimler Truck, responsible for Mercedes-Benz Trucks and BharatBenz.
