Mercedes-Benz Halts 2025 Pay Raises for Managers as Cost-Cutting Intensifies

The automaker cites economic challenges and declining profits as it eliminates home office options and freezes salaries for thousands of leaders worldwide.

• Mercedes-Benz will not grant salary increases to its managers in 2025 as part of a broader effort to reduce costs by billions of euros annually.
• The decision impacts a four-figure number of leadership roles globally, including department heads and some team leaders, though bonuses and stock programs remain unchanged.
• In addition to the salary freeze, managers in Germany will be required to work on-site starting January 2025, with the company emphasizing the importance of in-person collaboration.
• The measures follow a 54% drop in net profits for the third quarter of 2024, driven by declining sales in China and reduced demand for luxury and electric vehicles.
• Mercedes-Benz leadership has stated that the restructuring is aimed at creating a leaner, more resilient organization in response to ongoing challenges in the automotive industry.

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