Daimler Truck is embarking on a significant strategic transformation, aiming to reduce its German workforce by approximately 5,000 jobs by 2030. This initiative is central to an ambitious efficiency drive targeting over €1 billion in annual recurring cost reductions and production streamlining, ultimately designed to enhance the company’s long-term profitability and strengthen its competitive position in the global market.
- Daimler Truck plans to reduce its German workforce by approximately 5,000 jobs by 2030.
- The company aims for over €1 billion in annual recurring cost reductions through an efficiency drive.
- Workforce adjustments will be executed through socially responsible measures, including natural attrition, early retirement, and severance packages.
- Financial projections include 3-5% annual organic revenue growth and an adjusted return on sales exceeding 12% by 2030.
- Free cash flow is projected to increase by 50% by 2030 compared to 2024 levels.
- The strategy is underpinned by three core levers: “restructure, leverage, and grow.”
Workforce Restructuring and Efficiency Drive
The company’s workforce adjustments, which have been mutually agreed upon by the Board of Management and the general works council, are slated for execution through socially responsible measures. These include relying on natural attrition, expanding early retirement options, and offering targeted severance packages. This comprehensive approach is designed to ensure a stable future for Daimler Truck’s German operations while proactively adapting to evolving market demands and technological shifts within the automotive sector. The targeted €1 billion in annual recurring cost reductions underscores a firm commitment to operational discipline and resource optimization across its various segments.
Robust Financial Outlook and Growth Trajectories
Announced during its recent Capital Market Day in North Carolina, these far-reaching efficiency efforts underpin robust financial projections for Daimler Truck’s industrial business segment. The company anticipates achieving 3% to 5% annual organic revenue growth through 2030. This growth is expected to be fueled by an anticipated upturn in the North American vocational truck market, increasing sales of zero-emission vehicles in Europe driven by regulatory changes and growing environmental consciousness, and promising new opportunities within the Indian market and the global defense sector.
Further solidifying its ambitious financial targets, Daimler Truck aims for an adjusted return on sales exceeding 12% in its industrial business by 2030. Concurrently, free cash flow is projected to increase by a substantial 50% by 2030 compared to 2024 levels. This significant anticipated increase signals strong operational performance and disciplined capital management, positioning the company for sustained financial health and increased shareholder value.
Strategic Pillars for Future Growth
Achim Puchert, a Member of the Board of Management, articulated a clear, customer-centric strategic approach that guides the company’s transformation. He highlighted three core strategic levers—”restructure, leverage, and grow”—as fundamental to adapting Daimler Truck’s global operations to dynamic market conditions. This framework aims to optimize its comprehensive product and service offerings, ensuring the delivery of sustained value to its extensive customer base and diverse stakeholders worldwide. The “restructure” lever addresses internal efficiency and organizational agility, “leverage” focuses on maximizing existing strengths and technological advancements, and “grow” targets market expansion and new revenue streams, reinforcing the company’s forward-looking vision.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.