Recently, Mercedes - Benz's extensive layoff initiative has garnered substantial public attention. Around 4,000 employees have opted to accept severance packages and leave the company, with compensation amounts soaring as high as 'N + 11'. Senior management staff are eligible to receive up to €500,000. It's worth noting that this particular plan excludes the Chinese market.
Since the start of this year, Mercedes - Benz has been persistently refining its production capacity, supply chain, and personnel structure. The company has been encouraging roughly 30,000 employees to voluntarily resign. The overarching goal is to achieve annual cost savings of approximately €5 billion by 2027.
In the first half of 2025, impacted by factors like industry transformation, Mercedes - Benz witnessed a significant 55.8% decline in its net profit. Amidst this 'streamlining' process, Mercedes - Benz is also stepping up its efforts in electrification and digital transformation. The company has plans to roll out new models over the next two years, with exclusive offerings tailored for the Chinese market.
Moreover, influenced by elements such as a shrinking market share and tariff issues, the German automotive industry is experiencing a 'layoff wave'. Prominent companies like Volkswagen, Bosch, and ZF have all formulated layoff plans.
