Report: Mercedes-Benz to slash temporary workforce in Germany

Mercedes-Benz plans to slash thousands of temporary jobs in Germany as part of its cost-cutting programme, business newspaper Handelsblatt reported on Friday, citing company sources.

The reductions would affect "several thousand" temporary workers, according to the report.

A Mercedes-Benz spokeswoman declined to comment on the specific plans but stressed that temporary workers supplemented the company's permanent workforce rather than replacing it.

According to Handelsblatt, around 3,000 temporary workers are employed at the German carmaker's plants in Sindelfingen near Stuttgart, Bremen, and Rastatt in the south west.

Temporary workers are typically among the first to lose their jobs during economic downturns, as companies seek to reduce costs by not renewing fixed-term contracts. During periods of growth, however, many are offered permanent positions.

New severance programme 

Mercedes-Benz recently stepped up its cost-cutting efforts, announcing a "productivity offensive for Germany" that has sparked debate over labour costs.

In a letter to employees in Germany, management proposed several measures, including working longer hours for the same pay.

The company's works council and the IG Metall trade union have opposed the proposed cuts.

Mercedes-Benz also plans to relaunch its severance programme for employees in Germany, with the scheme expected to begin in December, the carmaker announced in late September.

Management is not currently considering cuts to its permanent workforce, which is covered by a job security agreement running until the end of 2034.

According to Handelsblatt, Mercedes-Benz aims to save €800 million ($895 million) annually in Germany through its productivity initiative.