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Mercedes aims to cut €800 million in labour costs in Germany, WiWo reports - Finance news and analysis from Global Banking & Finance Review
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Mercedes aims to cut €800 million in labour costs in Germany, WiWo reports

Published by Global Banking & Finance Review

Posted on September 24, 2026

1 min read

· Last updated: September 24, 2026

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Mercedes-Benz Targets €800M Labour Cost Reduction in Germany, Report Says

Mercedes-Benz Labour Cost Reduction Strategy

Reported Plans for Cost Reduction

BERLIN, Sept 24 (Reuters) - Mercedes-Benz plans to cut €800 million ($911 million) in labour costs in Germany, business news outlet WirtschaftsWoche reported on Thursday, citing three people familiar with the matter.

Options Under Consideration

According to the report, options under consideration include increasing working hours without additional pay, adjusting holiday and Christmas bonuses, or eliminating special payments.

Company Response and Worker Impact

Mercedes-Benz Official Statement

Mercedes-Benz declined to comment on speculation about ongoing discussions.

Management Communication to Workers

Management has told workers that producing in Germany has become too expensive, calling on them to work more and commit to cost-cutting targets. Otherwise, two German plants could be closed.

Industry Context

Competitor Actions

Volkswagen's Overhaul

Volkswagen is pursuing the most far-reaching overhaul in the company's history and BMW is also cutting thousands of jobs, as Germany's storied auto sector faces a growing threat from low-cost Chinese competitors while navigating tariffs and EV costs.

Additional Information

($1 = 0.8785 euros)

(Reporting by Emanuele Berro and Rachel More. Editing by Linda Pasquini and Mark Potter)

Key Takeaways

  • Mercedes seeks up to €800 million savings in labour costs in Germany via longer hours without extra pay and reduced holiday/Christmas bonuses or special payments (wiwo.de)
  • If no agreement is reached with the works council, two German plants could be closed (wiwo.de)
  • This move comes amid broader industry austerity: Volkswagen may cut up to 100,000 jobs and close multiple plants (investing.com); BMW plans to cut ~8,000 jobs by 2027 (investing.com)

References

Frequently Asked Questions

How much is Mercedes-Benz aiming to cut in labour costs in Germany?
Mercedes-Benz is planning to cut €800 million ($911 million) in labour costs in Germany, according to WirtschaftsWoche.
What measures are being considered for labour cost reduction?
Options include increasing working hours without additional pay, adjusting holiday and Christmas bonuses, or eliminating special payments.
Why is Mercedes-Benz considering these labour cost cuts?
Management says producing in Germany has become too expensive and is seeking worker commitment to cost-cutting to avoid possible plant closures.
Are other German carmakers also making cost reductions?
Yes, Volkswagen is undergoing a major overhaul and BMW is also cutting thousands of jobs to adapt to industry competition and costs.
Did Mercedes-Benz comment on the reported cost-cutting plans?
Mercedes-Benz declined to comment on speculation about ongoing discussions regarding cost-cutting measures.

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