Daimler Truck will reduce profit-sharing bonuses for employees in Germany after reporting a sharp decline in earnings for the 2025 financial year. Around 25,000 workers across the country are set to receive a lower payout compared with the previous year.
The company announced that eligible employees will receive a bonus of €2,701, which will be paid in April. The amount is significantly lower than the €4,140 bonus distributed for the 2024 financial year. The reduction reflects the company’s weaker financial performance during 2025.
Daimler Truck reported that its profit dropped sharply during the year. Consolidated net income fell to about €2 billion, down from roughly €3.1 billion in the previous year. The decline represents a drop of more than one-third in annual earnings.
The commercial vehicle manufacturer also experienced lower revenue and reduced unit sales during the same period. Industry conditions proved challenging, particularly in key international markets. According to the company, business performance was affected by several external pressures that weighed on demand and profitability.
One of the main challenges came from trade-related tariffs in the US, which affected the company’s operations and added pressure to its cost structure. At the same time, demand for commercial vehicles in North America weakened, further impacting sales volumes.
Daimler Truck, headquartered in Leinfelden-Echterdingen near Stuttgart, is one of the major truck manufacturers listed on Germany’s DAX. The lower employee bonus reflects the company’s profit-linked compensation structure, where payouts fluctuate depending on annual business performance.
The reduced bonus highlights how fluctuations in global trade conditions and regional demand can directly influence employee incentives in large manufacturing companies.
Source – https://www.hrkatha.com/news/daimler-truck-cuts-employee-bonuses-after-profit-decline/