Daimler Truck Presses On With Job Cuts

Daimler Truck Presses On With Job Cuts

Daimler Truck’s Chairwoman, Karin Radström, is maintaining her plans for workforce reductions despite significant opposition from the company’s works council. Radström defended the planned cuts of 5,000 jobs in Germany as necessary to enhance product appeal for customers, stating in a recent interview with “Handelsblatt” that proactive measures are preferable to delayed action in the future.

The announcement of the job cuts earlier last week triggered strong reactions from employee representatives. Bruno Buschbacher, Chair of the Mannheim plant’s works council, characterized the plans as “a slap in the face” to the workforce. Michael Brecht, Chair of the Group Works Council, voiced concerns regarding a perceived breach of agreements, a loss of trust and a lack of transparency surrounding the process.

Radström emphasized that Daimler Truck remains committed to its presence in Germany. “We are not withdrawing from Germany; on the contrary” she stated. “We are and remain a German company with 30,000 employees here – in Ulm, Stuttgart, Gaggenau, Wörth, Kassel, Mannheim and Berlin. We have not announced any intention to abandon any of these locations.

Addressing speculation about potential production shifts to Turkey, Radström acknowledged the country’s potential, but clarified that no decisions have been made. The “Cost Down Europe” program, she explained, aims to increase the company’s operating margin to 12 percent. Daimler Truck’s industrial business achieved a slightly lower operating margin of just under 9 percent in 2024, based on revenues.