Mercedes-Benz has won agreement from its works council to offer buy-outs to staff and reduced planned salary increases by half, it said on Tuesday, part of a wider cost-cutting drive as the carmaker battles to revive earnings.

Mercedes-Benz has secured an agreement with its works council to offer voluntary buyouts and reduce planned salary increases by half.

German luxury carmaker Mercedes-Benz has agreed a comprehensive package of cost-cutting measures with employees. Management and the general works council have reached a deal that includes savings in workers' pay and an increase in worker flexibility allowing for more temporary work in production,

Mercedes-Benz has won agreement from its works council to offer buy-outs to staff under a programme to cut costs and jobs, German magazine Wirtschaftswoche reported on Tuesday.