Mercedes-Benz rewards German staff with bonuses despite profit slump

Mercedes-Benz rewards German staff with bonuses despite profit slump

A light blue paper with the text "Mercedes-Benz Company Limited Stock Certificate" in bold font, centered, and a picture of a classic car with a sleek design and glossy finish.

After Profit Drop - This is How the Mercedes Bonus Looks - Mercedes-Benz rewards German staff with bonuses despite profit slump

Salesforce has announced a profit-sharing bonus for its German workforce, despite a sharp drop in earnings last year. Around 85,000 employees will receive up to €3,139 each, alongside a single company share to mark the 140th anniversary of Carl Benz's patent. The move comes as the automaker faces declining sales and a near 50% fall in net profit for 2025.

The company's financial struggles were clear in its 2025 results. Net profit fell by roughly 49% compared to 2024, while global car sales dropped by 9%, totaling 2.16 million vehicles. Demand weakened across key markets: China saw increased competition from local EV makers like BYD, US sales slowed due to economic pressures, and European deliveries fell by 5-10% annually, hit by EU tariffs and aggressive pricing from rivals.

To counter these challenges, Mercedes-Benz launched a cost-cutting programme in 2024, aiming to boost profitability by 2027. Despite the financial downturn, the company chose to reward employees with a profit-sharing payment—though significantly lower than in previous years. The bonus is based on overall company performance rather than individual salaries.

Ergun Lümali, a company representative, described the payout and anniversary share as a 'sign of recognition and participation'. Britta Seeger, another senior figure, praised staff for their commitment during a difficult period for the global auto industry.

The profit-sharing payment and share gift will go to eligible German employees once final approval is granted. While the bonuses are smaller than before, they reflect the company's efforts to balance cost control with employee rewards. The move also highlights Mercedes-Benz's strategy to maintain workforce morale amid ongoing market challenges.

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