Written by Cláudio Afonso | LinkedIn | X
Mercedes-Benz plans to cut costs by several billion euros annually in the coming years, the German media outlet Handelsblatt reported on Thursday citing a spokesperson.
“The global economic situation remains extremely volatile. Only through a sustainable increase in efficiency can we remain financially strong and capable of action. We are continuing on this path calmly but with great determination,” Mercedes’ spokesperson said in a statement.
The spokesperson declined to detail how the reductions would be implemented or address whether job cuts are being considered.
Mercedes-Benz reported third-quarter revenue of €34.5 billion ($37.4 billion), a decline of about 7% from a year earlier. Earnings before interest and taxes dropped 48% to €2.52 billion during the same period.
Last month, the company’s Chief Financial Officer Harald Wilhelm commented the third quarter results saying “They do not meet our ambitions.”
“We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business,” he added.
Mercedes-Benz reassured employees that a job-security agreement covering most of its German workforce would remain intact. The agreement, known internally as “Zusi 2030,” prohibits layoffs for operational reasons through the end of 2029, a policy the automaker reiterated to local media.
Written by Cláudio Afonso | LinkedIn | X
