German automaker Mercedes-Benz is planning to reduce its workforce in China by up to 15%, according to a Bloomberg News report on Thursday. Citing sources familiar with the matter, the report states that the layoffs will primarily affect the finance and sales divisions, particularly employees of Mercedes-Benz Auto Finance Co. and Beijing Mercedes-Benz Sales Service Co. The news was also reported by Reuters.
The report further indicates that Mercedes-Benz has already begun the layoffs, with many contract-based employees not having their agreements renewed. However, the process has accelerated significantly this month.
In response to Bloomberg, Mercedes-Benz China stated that it is adjusting its operational structure in alignment with market demand and competitive pressures. However, the company did not respond to Reuters' request for comment.
Last week, Mercedes-Benz announced a new cost-cutting strategy, revealing that its future product lineup would feature more petrol and diesel-powered vehicles than electric ones. The decision comes amid concerns over declining revenue in 2025.
European automakers are currently facing mounting challenges, including high production costs and intense competition from Chinese manufacturers, prompting several companies to announce factory closures and large-scale workforce reductions.
