Mercedes-Benz Expands Layoffs in China to R&D Division

[Company Update] Mercedes-Benz's layoffs in China have spread from its sales and service company to its R&D and manufacturing operations, with significant discrepancies in severance packages.

Core Developments: Layoffs Span Multiple Divisions, R&D Becomes Key Reduction Area

Beijing Benz Sales and Service Company plans to reduce headcount from approximately 900 to fewer than 600, having already cut about 10%. Starting in 2025, the restructuring will gradually affect automotive finance, IT, sales, and the R&D department. The China R&D centers (in Beijing and Shanghai), which previously employed around 2,000 staff, focus on electrification, intelligent technologies, and localized vehicle development.

Key Figures: Severance Ranges from N to N+9

This round of layoffs lacks a uniform standard: some employees received N times their salary due to contract expirations, while certain laid-off R&D staff obtained N+9. In the initial wave in early 2025, severance reached as high as N+11, but recent cases mostly offer N+6 or lower.

Strategic Rationale: Premium Brands Accelerate Cost Restructuring

Facing intensifying competition and pressure from the EV transition in China, Mercedes-Benz is implementing structural optimization to reduce labor costs, moving away from its traditional image of "high pay and job stability."