Mercedes-Benz Layoffs: German Automaker Cutting Unspecified Numbers of Jobs To Reduce Production Cost, Lower Pay Increase
Frankfurt, March 5: Mercedes-Benz, a Germany-based premium automobile maker, will reportedly reduce its workforce by cutting some jobs as it won an agreement with the council to offer buyouts to the employees and reduce the planned salary increase by half. The Mercedes-Benz layoffs will affect unspecified employees; however, the automobile giant said that production workers will be spared from the decision.
The layoffs at Mercedes-Benz will be implemented as a part of the company’s cost-cutting drive. According to a report by Reuters, Mercedes-Benz will extend the job security guarantee until the end of 2034. This is announced amid the automobile industry going through a global setback amid the rise of EVs and other economic factors. Ola Electric Layoffs: Bhavish Aggarwal’s EV Firm To Cut 1,000 Jobs as Part of Restructuring Amid Losses, Say Reports
According to the report, during the annual results conference, Mercedes-Benz Chief Financial Officer (CFO) Harald Wilhelm said the company announced its plans to outsource areas from finance, HR and procurement. As a part of this decision, the company will begin layoffs and reduce the workforce by not replacing the workers who retire and negotiating the voluntary redundancies, said the report.
Mercedes-Benz aims to reduce production costs by 10% in the next two years (by 2027). The report said that the German automaker will further reduce costs by 20% by 2030. The company would go beyond the ongoing 20% cost-reduction plan introduced in 2020, which was valid between 2019 and 2025. Automobile layoffs have increased recently in Europe amid industry challenges. Microchip Technology Layoffs: US-Based Semiconductor Company To Lay Off 2,000 Employees, Shut Down Manufacturing Facility Amid Slow Demand From Automotive Industry.
The report mentioned that the carmakers and component makers announced deep cuts, and Germany’s unions fought against management pressure to lay off employees, close factories, and move staff abroad. Last year, Volkswagen’s layoff plans were reportedly targeting tens of thousands of employees as the company faced struggles and other challenges.
(The above story first appeared on LatestLY on Mar 05, 2025 10:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
