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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 Targets €800 Million Labour Cost Reduction in Germany, Sources Say

Mercedes-Benz Labour Cost Reduction Plans in Germany

Overview of Cost-Cutting Measures

BERLIN, Sept 24 (Reuters) - Mercedes-Benz plans to cut €800 million ($910.64 million) in labour costs in Germany, business news outlet WirtschaftsWoche reported on Thursday, citing three people familiar with the matter.

Potential 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 Ongoing Discussions

Mercedes-Benz did not immediately respond to a Reuters request for comment.

WirtschaftsWoche said Mercedes declined to comment on the ongoing discussions.

Additional Information

($1 = 0.8785 euros)

(Reporting by Emanuele BerroEditing by Linda Pasquini)

Key Takeaways

  • The targeted €800 million labour-cost reduction aligns with Mercedes-Benz’s broader fixed-cost reduction programme, which aims for a 10 % drop in fixed costs by 2027. (group.mercedes-benz.com)
  • Specific measures under consideration include postponing or eliminating special payments, requiring employees to work longer hours for the same pay, and reducing bonuses. These reflect previously reported cost-saving actions. (tagesschau.de)
  • High labour costs in Germany continue to weigh on Mercedes’s competitiveness, spurring discussions around relocating production abroad, though the company maintains a goal to keep its German plants operational. (ms-aktuell.de)

References

Frequently Asked Questions

How much does Mercedes plan to cut in labour costs in Germany?
Mercedes-Benz plans to cut €800 million (approximately $910.64 million) in labour costs in Germany.
What measures is Mercedes considering to reduce labour costs?
Options include increasing working hours without extra pay, adjusting holiday and Christmas bonuses, or eliminating special payments.
Did Mercedes-Benz comment on the reported cost-cutting measures?
Mercedes-Benz did not immediately respond to requests for comment and declined to comment on the ongoing discussions.
Who reported on Mercedes' labour cost reduction plans?
The plans were reported by WirtschaftsWoche, a German business news outlet, citing sources familiar with the matter.

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