Daimler Truck aims to cut costs in Europe – Jobs in danger

Daimler Truck is a leading global manufacturer of commercial vehicles, primarily known for producing trucks and buses. It was formed as a separate entity from Daimler AG in 2021, which also encompasses the Mercedes-Benz passenger vehicles division. Daimler Truck focuses on innovation in transportation and logistics, including sustainable and electric vehicles. The company operates various well-known brands, such as Freightliner, Western Star, and Mercedes-Benz Trucks, and has a strong presence in markets worldwide.

Jobs in danger

Daimler Truck aims to cut its annual costs in Europe by at least one billion euros by 2030, primarily focusing on savings in Germany. The company will examine all cost areas, including material, variable, and personnel expenses. The CEO, Rådström, who has been leading since October 2024, explained that this cost-saving initiative is necessary because competitors in the truck manufacturing sector are achieving better financial returns than Daimler Truck.

Jobs in Germany are expected to face significant negative impacts due to cost-cutting measures. This could mean that companies in Germany may reduce their workforce, limit hiring, or implement other cost-saving strategies that could lead to job losses or reduced job stability.

Rådström emphasized the importance of discussing ways to improve profitability for Daimler Truck while the company is stable, rather than waiting until it faces serious challenges. She pointed out that top competitors achieve about 15% return on sales, a target Daimler Truck has not met. Currently, Daimler Truck has approximately 34,000 employees in Germany.