Mercedes-Benz China Offers Layoff Compensation Up to N+9 Across Multiple Departments

[Corporate Restructuring] Mercedes-Benz has initiated workforce optimization within its R&D and manufacturing operations in China, with some employees receiving compensation packages as high as N+9.

Key Development: Layoffs Extend to Core R&D and Manufacturing Units

Since 2025, Mercedes-Benz China has progressively expanded personnel adjustments from back-office functions—such as sales and finance—to its R&D and manufacturing systems. Adjustment methods include non-renewal of expiring contracts, business downsizing, and headcount reductions, rather than a uniform layoff policy.

Key Figures: Compensation Reaches Up to N+9; R&D Cuts Estimated at 10%

Departing employees have reported receiving N+9 compensation, while others received only the statutory minimum of N. Reports indicate that Mercedes-Benz China’s R&D division is expected to reduce its workforce by 10% in 2026, though the company has not officially confirmed this figure.

Industry Impact: Premium Brands Accelerate Organizational Streamlining Amid Pressure

Facing intense competition from domestic new energy vehicles, overseas luxury automakers are experiencing declining sales in China. Mercedes-Benz is advancing structural optimization through generous severance packages, highlighting a strategic shift in response to mounting market challenges.