Mercedes-Benz Workers Face Two-Year Wait for Bonus as Carmaker Slashes Costs
29.06.2026 - 08:13:01 | boerse-global.de
Germany’s luxury carmaker is pushing a scheduled bonus for roughly 90,000 domestic employees out to 2027, as plunging profits and a bruising downturn in China force the company to tighten its belt. The decision has ignited a clash between management and labour representatives.
The so-called Transformationsbaustein — a transformational bonus worth 18.4 percent of one month’s pay — had been set for July 2026. Mercedes-Benz now says it will not flow until 2027. The board cited mounting constraints on free trade and a steady erosion of Germany’s competitiveness as the reasons.
Behind the delay lies a brutal financial slide. Group net profit halved from €10.4 billion in 2024 to €5.3 billion in 2025 — a drop of nearly 50 percent. Operating profit tumbled 57 percent to €5.82 billion, and the automotive division’s return on sales limped in at just 5 percent. The first quarter of 2026 brought no relief: net profit slipped another 17.2 percent. Sales in China, the company’s most important single market, collapsed by 27 percent.
Mercedes-Benz chief executive Ola Källenius and personnel board member Renata Seeger argue the company must accelerate internal processes to remain viable. A cost-cutting programme called Next Level Performance aims to shave several billion euros from annual outlays by 2027. The possibility of shifting administrative and production capacity abroad is also under review.
Internally, the debate has turned to working hours. Martin Brudermüller, chairman of the supervisory board, is pushing for a 40-hour week without any compensatory pay rise. Works council leader Ergun Lümali denounced the bonus postponement as a unilateral decision by management that ignores the workforce’s interests.
The move comes as the entire German auto industry reels. Volkswagen is reportedly planning to cut up to 100,000 jobs worldwide and may close four plants. BMW has slashed its margin forecast to between 1 and 3 percent. Porsche is moving Cayenne production to Leipzig, but only after securing wage concessions from employees there.
Analysts note that even a luxury brand like Mercedes-Benz cannot escape the cost pressures of a volume manufacturer. The strategy correction, they say, was long overdue.
