Azernews.Az

By Alimat Aliyeva

Daimler Truck, the German truck manufacturing giant, has announced plans to cut 5,000 jobs in Germany by 2030 as part of a broader cost-cutting initiative aimed at improving operational efficiency, Azernews reports.

In its statement, the company clarified that the majority of these job reductions would be achieved through natural staff turnover and partial retirements, with targeted compensation packages for affected employees. The cuts will primarily impact the Leinfelden-Eckerdingen plant, located near Stuttgart, which, as of the end of last year, employed around 28,000 people. The total workforce of Daimler Truck in Germany currently stands at approximately 35,500 employees.

These job cuts are part of Daimler Truck’s European cost-cutting program, designed to streamline operations and ensure the company remains competitive in an increasingly challenging market. The reductions will affect multiple departments, including production, management, sales, administrative, and development, with the Mercedes-Benz Trucks brand—recently showing signs of weakness—being particularly impacted.

In addition to reducing labor costs, the company aims to lower expenses in areas such as materials, management, IT infrastructure, and research and development. This restructuring is expected to help Daimler Truck achieve a reduction of over 1 billion euros in current expenses by 2030.

Daimler Truck operates five large factories across Germany, and while the company is committed to minimizing the impact on workers, the job cuts signal broader industry trends. Many manufacturing companies, including those in the automotive sector, are adjusting to new realities, such as the transition to electric vehicles, automation, and the rising pressure to cut costs amid economic uncertainty.

While the cuts may seem harsh, they could also be part of a larger strategy to position Daimler Truck as a more agile and sustainable player in the global market. As the industry shifts towards cleaner, more efficient technologies, Daimler’s efforts to reshape its workforce and infrastructure might be aimed at securing long-term growth and profitability in a rapidly evolving sector.