Mercedes is set to lay off tens of thousands of employees as part of a restructuring to respond to market conditions. Following Volkswagen’s announcement of over 30,000 job cuts, the German automotive sector is facing challenges that have also affected other leading manufacturers.
Reports indicate that Mercedes is considering laying off about 20,000 employees. Previously, the company had stated plans to eliminate 15,000 positions by 2027; however, insiders suggest that the total could increase to 20,000. This strategy aims to save five billion euros, which is crucial for securing the company’s future and its ability to withstand potential crises, according to Fenix-magazin.de.
The necessity for these reductions stems from a drop in orders and the sluggish response to market shifts—concerns that have been voiced previously. Furthermore, alongside the layoffs, Mercedes intends to cut bonus payouts.
Vacant positions due to layoffs or retirements will no longer be filled, and the sale of certain production capacities is reportedly planned. There is already speculation about the sale of a delivery vehicle factory in Argentina, which employs 2,000 people.
All revenues, except for the severance program, will be directed towards the development of electric cars and high technologies in internal combustion engines, but they want to focus on covering costs themselves.
