Mercedes Considers Cutbacks: 40-Hour Work Weeks with No Pay Increase
Mercedes-Benz is facing challenges and is considering a stricter austerity plan that may require employees to work 40 hours for the same pay, while also potentially ending remote work.
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Mercedes-Benz is currently facing challenges. The Stuttgart-based automaker is contemplating a stricter austerity plan, which would require employees to work 40 hours instead of the current 35 hours — for the same pay. A potential end to remote work is also on the table.
Competition from China, U.S. tariffs, a weak dollar — and now supply chain problems. Mercedes-Benz is not faring well at the moment. Sales and profits are shrinking. The company has seen a decline of about 25 percent on the stock market since the beginning of 2026.
Mercedes-Benz Tightens Austerity Measures
As a consequence, Mercedes-Benz is intensifying its austerity measures. Since the end of June 2026, various measures have repeatedly come to light that the company intends to implement or is at least considering. For example, a special payment originally planned for July — amounting to 18.4 percent of the monthly salary — has been postponed by a year. This affects 90,000 employees, according to SWR.
Increased Work Hours for the Same Pay
And that's not all. At Mercedes-Benz, the 35-hour work week is also under review. In the future, the plan is for employees to potentially work up to 40 hours — but for the same pay. According to the company, this is due to high labor costs compared to international standards.
According to the General Works Council, these measures and considerations demonstrate the significant pressure the company is currently under. Employees, on the other hand, are not willing to accept these austerity measures without resistance, as reported by heise.de. Thousands of employees from Mercedes and Volkswagen, where up to 100,000 jobs could be at risk globally, protested on Friday, July 3, 2026, against the plans.
IG Metall Protests Against Measures
The employees are not prepared to "pay the price for managerial failures," stated IG Metall. The workers did not cause the current problems of the companies. Instead, they have generated billions in profits over the past years, supported the transformation, and repeatedly demonstrated flexibility. IG Metall announced further protests and a "hot" summer ahead, according to Wallstreet-Online.
Meanwhile, Mercedes-Benz is also receiving bad news from production. As reported by Handelsblatt, the ramp-up of production for the so-called "fate model" electric SUV GLC is facing delays. After a celebrated launch in mid-May with political prominence, there are now shortages of batteries and electrical systems.
The overall state of the company will be revealed on July 28, 2026, when Mercedes-Benz presents its figures for the recently concluded second quarter. The tightening of austerity measures does not bode well.