Daimler Trucks Announces New Aims, Job Growth - Shares Rapidly Soaring
In a move aimed at enhancing efficiency and competitiveness, Daimler Truck, a leading commercial vehicle manufacturer, has announced plans to cut around 5,000 jobs in Germany by 2030. The decision comes in response to challenging economic conditions and cost pressures, as well as global market pressures.
The company, which saw a 12% drop in group sales in 2024 and an additional 8% decline in the first quarter of 2025, is facing sluggish sales and rising energy and logistics costs in Germany. Moreover, the demand for Mercedes-Benz trucks has declined sharply in Europe and Latin America, with further pressure expected from U.S. tariffs on imported vehicles and materials.
To address these issues, Daimler Truck has outlined a series of cost-cutting goals. The company aims to cut recurring annual costs by more than €1 billion by 2030 through its "Cost Down Europe" program. Part of the production will be relocated to countries with lower costs to strengthen competitiveness in Europe. The company will also utilize natural attrition, expand early retirement options, and offer targeted severance packages to reduce positions in a socially responsible manner.
In addition to these measures, Daimler Truck projects organic revenue growth of 3% to 5% annually until 2030, supported by growth in the North American vocational truck market and zero-emission vehicle sales in Europe. The company expects an adjusted return on sales of more than 12% in its industrial business through 2030.
The cost-cutting measures will affect production, central office, administration, sales, and development. The approximately 5,000 jobs will be reduced mainly through natural fluctuation and phased retirement. Daimler Truck aims to save at least €1 billion through these measures by 2030.
The stock of Daimler Truck has climbed to a new high since March, reflecting a positive market reaction to the company's plans. Analysts have also responded favourably to the announcements made at Daimler Truck's capital market day in Charlotte, North Carolina, USA. Michael Aspinall from Jefferies described the targets for the North America segment as slightly better than expected, while Nick Housden from RBC Capital Markets had a positive summation of the event.
However, the initial reaction to the job cuts was not entirely positive. The stock dropped significantly but closed up 1.3% at €41.25. The weak economic environment in Europe, particularly in Germany, has been holding back Daimler Truck for some time. The company aims for a margin of more than 12% by 2030, a goal that the cost-cutting program is intended to help achieve.
In summary, Daimler Truck's job cuts and cost-cutting measures are part of a broader strategy to improve its financial performance and boost competitiveness in the face of challenging economic conditions and global market pressures. The company is targeting significant cost savings and revenue growth, with a focus on strengthening its position in key markets such as North America and Europe.
Daimler Truck, in response to sluggish sales and rising costs, has announced plans to cut around 5,000 jobs and achieve cost savings of more than €1 billion by 2030, as part of its strategy to boost competitiveness and meet ambitious financial goals in the business and finance industry. The company expects an adjusted return on sales of more than 12% in its industrial business through 2030, with organic revenue growth of 3% to 5% annually, driven by the North American vocational truck market and zero-emission vehicle sales in Europe.
