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Mercedes-Benz plans big cuts as sales slump

Mercedes-Benz has announced plans to cut costs by several billion US dollars annually, aiming to enhance efficiency amid intensifying global competition. While specific details of the cost-cutting measures remain undisclosed, most German employees are likely safeguarded by the company’s “Zusi 2030” policy, which prevents compulsory redundancies until 2029. The move follows senior management’s endorsement of stricter austerity measures and builds on prior savings from reduced fixed costs. However, the company faces mounting challenges, including a significant slowdown in Chinese demand due to geopolitical tensions, cautious consumer spending, and increased EU tariffs on Chinese EVs. These factors have contributed to a sharp decline in Q3 2024 performance, with revenue down 6.7% and net profit plunging 54% YoY.

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