Mercedes-Benz Delays Bonus for 90,000 German Workers as Profit Halves in Two Years
27.06.2026 - 02:31:19 | boerse-global.de
A drastic profit slump is forcing Mercedes-Benz to tighten its belt, and the company’s German workforce will feel the pinch well into 2027. The carmaker has pushed back a promised special payment for roughly 90,000 unionised employees by nine months, and management is openly exploring a return to longer working hours without extra pay.
The so-called “transformation component” – a one-off bonus equal to 18.4 percent of a month’s salary – was originally scheduled to land in employees’ bank accounts in July 2026. Under the revised timetable, the money will not arrive until April 2027. The board has also reserved the right to cancel the payment entirely if the business outlook fails to stabilise. Industry sources estimate the delay alone saves the company tens of millions of euros.
The trigger for the austerity drive is clear. Mercedes-Benz reported net profit of ¥10.4 billion in 2025, but that figure collapsed to ¥5.3 billion in 2026 – a decline of nearly 50 percent. The first quarter of 2027 brought no relief, with earnings falling a further 17.2 percent.
Management points to a triple threat: intensifying competition in China, geopolitical uncertainty, and persistently high energy costs inside Germany. To fight back, the board launched a savings programme called “Next Level Performance,” aimed at overhauling the company’s cost base.
The imbalance between domestic headcount and global sales is a particular worry. Two-thirds of Mercedes-Benz employees work in Germany, yet the country accounts for only about 15 percent of worldwide vehicle sales.
Push to return to 40-hour week
Working time is emerging as a second flashpoint. German Mercedes-Benz staff currently put in 35 hours a week. The board is now examining whether to extend that to 40 hours – without compensating workers with extra pay. Supervisory board chairman Martin Brudermüller has publicly backed the idea of a full return to the 40-hour week.
In parallel, management is weighing the relocation of some production and administrative functions abroad. Officials cite high sickness absenteeism and a lower number of effective working days in Germany as justifications for the shift.
Works council fires back
Employee representatives are fighting the plans on multiple fronts. The company’s central works council denounces the bonus deferral as a unilateral move by the board that bypassed the usual consultation procedures. “Decision-making bodies with co-determination rights were not adequately involved,” the council said in a statement.
On the question of work hours, union leaders insist that any change falls under collective bargaining law, not managerial prerogative. Demands for longer hours without higher pay, they argue, violate existing contracts. The message from the labour side is blunt: the transformation of Mercedes-Benz must not be financed solely by the German workforce.
