German luxury carmaker Mercedes-Benz has confirmed job cuts in China as part of a business consolidation effort, citing the need to improve operational efficiency in a challenging market environment.
“Mercedes-Benz China will consolidate and cut redundant and duplicated positions, and the consolidation in business will inevitably involve some employees’ work schedules,” the company said, according to Chinese media outlet Guancha.
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The move follows a report from AutoPix that Mercedes-Benz China began layoffs on February 26, affecting approximately 15% of its workforce, primarily in sales and auto finance divisions. Research and development operations remain unaffected, the report said.
AutoPix also reported that laid-off employees would receive severance equivalent to N+9 months’ salary, where N represents years of service. The company was also said to be offering additional wages for March and April if employees do not find new jobs within two months. Mercedes-Benz, however, denied the reported compensation figures but stated it would “act responsibly and offer the employees involved a package that was as reasonable as possible.”
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Mercedes-Benz’s financial report, released on February 20, showed the company posted revenue of €145.6 billion ($152.5 billion) in 2024, down 4.46% year-on-year. Earnings before interest and taxes (EBIT) declined 30.96% to €13.6 billion.
