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Thursday, Apr 24, 2025

Mercedes-Benz Plans Workforce Reduction with Generous Severance Packages

Mercedes-Benz Plans Workforce Reduction with Generous Severance Packages

The German car manufacturer aims to save €5 billion by 2027 while offering up to €500,000 in severance to departing employees.
Mercedes-Benz, the German automotive manufacturer, has announced plans to reduce its workforce as part of a strategy to save approximately €5 billion by 2027. To facilitate this process, the company is offering substantial severance packages of up to €500,000 to employees who opt for voluntary departure from the firm.

The severance program, titled "Next Level Performance" (NLP), is set to begin in April and will run until March 2026. This initiative aims to incentivize voluntary exits as part of the company's broader cost-saving measures.

Under this program, calculations indicate that a team leader at Mercedes-Benz who is 55 years old, with a gross salary of €9,000 and 30 years of service, could anticipate a severance payment exceeding €500,000.

Meanwhile, a 45-year-old employee with 20 years of experience and a gross salary of €7,500 would be eligible for a severance package of around €300,000.

The offer requires mutual agreement between the employee and the company for it to be valid at the end of the employment relationship.

Earlier in March, Mercedes-Benz reached an agreement with its workers' union regarding a cost-saving program.

Under this agreement, the company has committed to not laying off employees for operational reasons until 2035. In exchange, employees agreed to forgo salary increases, and this year, they will see a reduction in their profit-sharing bonuses.
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