Daimler Truck Launches €1 Billion Cost-Cutting Program, Cuts 5,000 Jobs in Germany

Daimler Truck, the German commercial vehicle manufacturer, has announced an ambitious cost-cutting program aimed at reducing operational expenses in Europe by more than €1 billion by 2030. The decision comes as the company prepares to face growing market challenges, including anticipated Chinese competition in the electric truck segment and a significant decline in financial performance over the past year.

Warning of Chinese Competition in the Truck Sector

Karin Rådström, CEO of Daimler Truck, revealed expectations of a major Chinese offensive in the truck sector, similar to what is already happening in the passenger car market. She stated that Chinese truck manufacturers have significant strength in their domestic market, with dozens of different companies that may undergo a broad consolidation process, making confrontation inevitable. Rådström emphasized the need for continuous work to maintain innovation and improve costs to keep pace with these challenges.

Previous Experience with Chinese Electric Buses

Rådström, who also chairs the Commercial Vehicle Committee at the European Automobile Manufacturers' Association, noted that Chinese companies have been active in the electric bus market in Europe for over a decade. She pointed out that these companies have achieved notable market shares but have not taken over the market entirely, asserting that Daimler Truck has proven its ability to generate significant profits and maintain strong competitiveness. She added that the company takes Chinese competition seriously but is confident in its ability to compete, just as it competes with American, European, Korean, and Japanese firms.

Financial Downturn Drives Cost-Cutting Measures

Daimler Truck, headquartered in Leinfelden-Echterdingen near Stuttgart, is under increasing pressure following a sharp decline in financial performance. The company's profits in 2025 fell by 34% compared to the previous year, reaching only €2 billion, impacted by US tariffs and weak demand in North America. Revenues and sales also dropped significantly, while profits in the first quarter of the current year plummeted by 80%, prompting decisive action.

Cost Down Europe Program and Job Impact

Last year, Daimler Truck launched the "Cost Down Europe" program, targeting a reduction of over €1 billion in operational costs across the European continent by 2030. The program will result in the elimination of approximately 5,000 jobs in Germany, a move aimed at accelerating the company's competitiveness amid major transformations in the global truck industry.