Daimler Truck Plans to Cut 5,000 Jobs in Germany: Kassel Plant Among Those Affected
Major Workforce Reductions Announced
Daimler Truck has announced plans to reduce its workforce in Germany by around 5,000 positions by the year 2030. The news came during the company’s Capital Markets Day held in Charlotte, North Carolina, USA. One of the sites impacted by this restructuring is the axle plant in Kassel, which currently employs approximately 2,700 people. However, Daimler Truck has not yet provided specific details about the scale of cuts expected at the Kassel facility.
Approach to Job Reductions
According to company representatives, the reduction in staff will primarily occur through “natural fluctuation,” meaning jobs will be phased out as employees retire or leave voluntarily. There are also plans to expand early retirement options and severance programs, rather than pursue forced layoffs. Importantly, an agreement was reached with the works council earlier in May, ensuring that layoffs for operational reasons are excluded until at least the end of 2034.
Savings Initiative Targets German Locations
The job cuts are part of a broader cost-saving initiative called “Cost Down Europe,” which is focused largely on German sites. The company’s goal is to improve profitability, aiming to save around one billion euros by 2030. While these measures are intended to secure Daimler Truck’s long-term competitiveness, the announcement has generated uncertainty among workers, especially since exact numbers for each location have not been shared.
Surprise and Frustration from the Works Council
The Daimler Truck works council expressed surprise at the announcement, with chairman Michael Brecht stating that discussions had not included any specific numbers regarding job cuts. He criticized the timing and manner of the disclosure, saying it has unnecessarily unsettled employees, seemingly in an effort to please the capital market.
Unclear Impact on Kassel Facility
At this point, neither Daimler Truck nor the works council can specify exactly how the Kassel plant will be affected. What is clear is that various departments—including production, administration, sales, and research and development—will undergo efficiency reviews. The company is also evaluating whether certain functions could be performed more cost-effectively at other locations, potentially even abroad, or outsourced to external companies. Any decision to move work outside Germany or to third-party firms will only be made if it can be proven to be more cost-efficient. The employee representatives have a say in this process.
Agreement on German Truck Operations
Earlier this year, Daimler Truck and the works council established a general framework for the company’s truck operations in Germany, particularly near Stuttgart where around 28,000 people are employed. Although cost-saving measures were agreed upon, no figures for job cuts were specified at that time.
