Mercedes-Benz delays bonus, eyes 40‑hour week amid cost‑cutting drive

Mercedes‑Benz announced intensified cost‑saving measures as it confronts a "dramatic" situation in Germany. The company will postpone the annual "Transformationsbaustein" special payment – equal to 18.4 % of an employee’s monthly salary – for roughly 90,000 German staff from July 2026 to the following year (some reports cite April 2027). At the same time, management is reviewing an extension of the weekly working time from the current 35 hours to 40 hours without additional pay, and plans talks with the works council.

The board warned that "Der Erfolg unserer Produktoffensive droht zu verpuffen, wenn zu hohe Kosten die Erträge auffressen" (the success of our product offensive risks being erased if high costs eat away earnings). Union representatives called the move "einseitige Entscheidung des Unternehmens" and warned that defining competitiveness through unpaid longer hours is "zu einfach" (too simplistic).

The measures follow a sharp decline in profitability – 2025 profit fell to €5.3 bn, a 50 % drop, and first‑quarter 2026 results were down 17.2 %. The cost‑reduction program "Next Level Performance" aims to cut billions annually. Mercedes‑Benz shares slipped modestly after the announcement.