Commercial vehicle manufacturer Daimler Truck on Tuesday announced that it plans to cut around 5,000 jobs in Germany by 2030.

The development comes just a day after Daimler Truck reported a 5% drop in second-quarter sales, with results especially weak in its critical US market.

Why is Daimler cutting jobs?

The company said recent business figures showed its Mercedes-Benz Trucks need to become more market resilient.

The cost-cutting program, named "Cost Down Europe," is intended to get the European business back on track and improve profitability. Its aim is save up to more than €1 billion in total annual savings by 2030.

A day ahead of the announcement, sales fell for a second quarter — to 106,715 trucks and buses compared with 112,195 units last year.

The DAX-listed company reached an agreement in May with the central works council on key points for its German truck sites.

This includes a socially responsible workforce reduction and a commitment to avoid compulsory redundancies until the end of 2034.

What jobs will be cut?

The company plans to cut recurring costs by more than one billion euros by 2030, targeting personnel, materials, administration, IT infrastructure, and research and development expenses.

A spokesperson said most jobs would be cut through natural attrition and early retirement, though targeted severance programs are also possible.

The cuts will affect the truck division's Stuttgart hub, which employed around 28,000 people at the end of 2024.

Daimler Truck has about 35,500 employees in Germany overall with five sites in Germany: Gaggenau, Kassel, Mannheim, Stuttgart, and Wörth — the latter being Europe's largest truck assembly plant.

Daimler Truck AG was split off from the former Daimler AG in 2021. After the spin-off, Daimler Truck kept the Mercedes-Benz Trucks brand for its heavy and medium-duty trucks in Europe and other markets.

Edited by: Wesley Rahn