Mercedes sharpens cost-cutting plan, shares react to delayed bonus
27.06.2026 - 10:06:38 | ad-hoc-news.de
By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 10:06.
Mercedes-Benz Group (DE0007100000) has tightened its cost-cutting agenda in Germany, postponing a significant collectively bargained special payment and putting longer working hours on the table, according to several German media reports that cite an internal board letter to staff. The DAX constituent’s shares most recently closed on Xetra clearly lower around the mid-40 euro range.
What the savings plan changes
The key measure is the postponement of a tariff-based special payment called the "Transformationsbaustein", which amounts to 18.4 percent of the regular individual monthly salary and was originally scheduled for July. Around 90,000 of roughly 108,000 Mercedes employees in Germany are affected by this deferral, according to reports based on the internal communication that was shared with the Deutsche Presse-Agentur.
Media including Tagesspiegel and Frankfurter Rundschau describe the move as part of a broader effort to rein in costs in German plants where overcapacity and a comparatively high rate of sick leave have been flagged as issues by management. The board argues in its letter that labour hours in Germany need to become cheaper and that all areas should work more for the same money to safeguard the company’s long-term success and competitiveness.
Longer hours, structural streamlining
Beyond the deferred bonus, the board outlines a shift back towards a 40-hour week in Germany as a central lever to make fixed cost structures more flexible and to deploy capacity more efficiently in production and administration. In the same context, management points to planned relocations of certain products and administrative functions to foreign locations, underscoring the global production footprint and the pressure on German sites to adjust.
Reports emphasize that the company sees these measures as necessary to prevent earnings from being eroded further by rising costs, after profit had already halved from 10.4 billion euros in 2025 to 5.3 billion euros, following a weaker 2024. While concrete plant-level changes are not fully detailed yet, the tone of the letter suggests that Mercedes is prepared to push through unpopular measures to protect margins and cash generation in a more demanding competitive landscape.
All news and analysis on the Mercedes-Benz Group shares
Read more reporting, analysis and data points on the Mercedes-Benz Group shares, from strategy moves and cost programs to detailed chart and valuation metrics.
How the measures meet a weaker earnings backdrop
The sharpening of the savings program comes against a cooling profit trajectory: in 2025 Mercedes-Benz Group’s net income dropped by almost half to 5.3 billion euros compared with 10.4 billion euros in the prior year, reflecting margin pressure and more challenging demand patterns. The current package of deferrals and longer working hours is portrayed internally as an immediate response to costs that are starting to consume more of the earnings power in domestic operations.
Several reports stress that the board’s letter links German cost levels and productivity directly to the company’s ability to finance investments in electric vehicles, digital platforms and autonomous driving technology from operating cash flow. The message to employees is that without leaner structures and more flexible working arrangements in Germany, future growth initiatives could be constrained by the need to protect the balance sheet and credit metrics.
What the chart and Xetra trading show
On the market side, technical analysis from finanzen.net notes that Mercedes-Benz Group shares triggered a new four-week low signal on 26 June at around 16:00, a pattern described as a short signal in the chart-based view. The stock most recently closed on Xetra at 43.34 euros, down about 2.9 percent on the day, with the move framed in the commentary as a reaction to the cost-cutting headlines and a broader weak tone in European equities.
MarketScreener data show the shares about 4.3 percent below their level at the start of the year, underperforming a number of auto peers in the STOXX Europe 600 autos and parts segment. The trading commentary highlights that the Xetra listing under ticker MBG sits within the DAX and EURO STOXX 50, meaning that fund flows tied to those indices can amplify moves when corporate news coincides with sector-wide shifts in investor risk appetite.
The product behind the stock
Mercedes-Benz Group generates its revenue primarily by designing, manufacturing and selling premium passenger cars and light commercial vehicles under the Mercedes-Benz brand, with electric models marketed as EQ and high-performance variants under Mercedes-AMG. The company also offers financing, leasing and mobility services that support vehicle sales and contribute recurring fee income alongside the core automotive business.
Where the stock trades today
The Mercedes-Benz Group shares (DE0007100000) last closed on Xetra at 43.34 euros as of 2026-06-26, 17:35.
Mercedes-Benz Group key share data
- Company: Mercedes-Benz Group AG
- ISIN: DE0007100000
- WKN: 710000
- Ticker: MBG
- Trading venue: Xetra
- Price (as of 2026-06-26, 17:35): 43.34 EUR
- Market cap: approximately 46 billion EUR (as of 2026-06-26)
- Sector / industry: Automobiles and components
- Index membership: DAX, EURO STOXX 50, STOXX Europe 600
- Next earnings date: not officially scheduled
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation to engage in any investment activity. All data are based on sources believed to be reliable but may be subject to change.
