At 100, Mercedes-Benz Workers Walk Out as Profit Halves and Bonus Payments Slip
30.06.2026 - 02:46:42 | boerse-global.de
On the eve of its 100-year anniversary, Mercedes-Benz faced an unexpected commotion on the factory floor. More than 500 employees at the Bremen plant downed tools after lunch on June 26, triggering a spontaneous work stoppage that temporarily brought production to a standstill. The site employs roughly 11,500 people.
The anger is directed squarely at boardroom cost-cutting. A collective-bargained special payment worth 18.4 percent of one month’s salary — originally slated for July 2025 — will now be paid out two years later, in 2027, affecting around 90,000 workers. Even more explosive is the debate over working hours: supervisory board chairman Brudermüller has floated the idea of a 40-hour week without extra pay. Management blames Germany’s struggling business climate, free-trade headwinds, and weak demand in China. The IG Metall union and the works council have pushed back hard.
The financial squeeze is plain. Net profit at Mercedes-Benz dropped to 5.3 billion euros in 2025, down from 10.4 billion the previous year. The first quarter of 2026 brought no relief: group earnings slid 17.2 percent. Shares recently traded at around €44.15.
External pressures add to the pain. The United States is threatening tariffs of 30 percent. In response, Mercedes is reviewing the possible closure of its plant in East London, South Africa, where capacity utilisation has fallen from 110,000 to 70,000 vehicles. Sales in China remain sluggish, forcing the company to recalibrate its luxury-first strategy and refocus on volume models.
The company marked its centenary on June 29, recalling the 1926 merger of Daimler and Benz. Industry observers see the next five to ten years as make-or-break for the storied manufacturer. To diversify, Mercedes is branching into residential projects in Dubai and Miami.
Nor is the crisis confined to Stuttgart. Volkswagen is planning radical cuts under its “Zielbild 2030” programme, potentially affecting up to 100,000 jobs and several domestic plants. At Porsche in Leipzig, wage reductions are under discussion. Mercedes aims to offer more clarity when it publishes its next quarterly figures at the end of July.
