Mercedes-Benz China Undergoes Major Layoffs, Sales System Heavily Affected

Mercedes-Benz China held discussions with some employees on the 26th and immediately initiated layoffs, with a reduction rate of about 15%. This round of layoffs mainly involves the sales and automotive finance systems. The main companies affected are Mercedes-Benz (China) Automotive Sales Co., Ltd. and Mercedes-Benz Automotive Finance Co., Ltd., while the research and development system is not currently involved.

Employees who are laid off can receive compensation of N+9. If they do not join a new company in the next two months, they can also receive salaries for March and April. A source close to Mercedes-Benz China revealed that this round of layoffs is a “general layoff,” with almost every department of the sales and finance companies participating. Among the laid-off employees, a large proportion are those with “indefinite-term” labor contracts.

According to reports, Mercedes-Benz China just held a Town Hall meeting on February 25th, with Ola Källenius, Chairman of the Board of Management of Daimler AG, personally presiding over it. On February 20th, Daimler’s 2024 fiscal year performance report showed a net profit of 10.4 billion euros, down by 28% year-on-year. The decline in performance at Mercedes was mainly attributed to reduced sales volume, especially in the Chinese market.

During the financial report meeting, Källenius stated: “To ensure our competitiveness as a company we are taking measures to make us faster, leaner and stronger.” Layoffs are one such measure being taken; apart from China regionally, Mercedes will also be implementing layoffs in other countries and regions.

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