Archive — CN — technode
Mercedes-Benz reportedly expands job cuts in China to R&D and manufacturing
Mercedes-Benz plans to cut its workforce in China from about 900 to under 600, impacting R&D and manufacturing, as part of ongoing personnel optimization since 2025. The adjustments lack a unified compensation framework and are mainly executed via contract non-renewals rather than formal layoffs.
Key points
- Mercedes-Benz's workforce in China will reduce from 900 to under 600 through two rounds of job cuts.
- 10% of the job cuts have already been executed as per reports.
- Personnel optimization has occurred across multiple business units including R&D, manufacturing, auto finance, sales, and IT since 2025.
- Staffing changes in the R&D division mainly happen through non-renewal of contracts rather than formal layoffs.
- The adjustments lack a standardized compensation framework.
Why it matters
- This trend reflects the broader wave of workforce reductions in the automotive industry due to changing market conditions.
- As of 2025, many companies are exploring automation and AI to optimize their workforce.
- Similar job cuts in other automotive companies signal a shift towards more lean operations in response to rising costs and market competition.
Mercedes-Benz's job cuts in China encapsulate a strategic shift towards workforce efficiency amidst industry challenges, reflecting broader trends of automation and optimization in the automotive sector.