Mercedes-Benz Slashes Workforce in China: R&D and Production Affected
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Quick answer
Mercedes-Benz is conducting workforce reductions in China, impacting R&D, manufacturing, IT, sales, and auto financing divisions.
German automotive giant Mercedes-Benz is continuing its restructuring efforts in China by implementing significant workforce reductions. According to sources, the Beijing-based Beijing Mercedes-Benz Sales & Service Co. plans to reduce its workforce from 900 to fewer than 600 employees. The process is being carried out in two phases, with approximately 10% of the planned changes already completed.
The reductions are not limited to a single office. Since early 2025, the company has been optimizing staff across multiple business segments, including auto financing, sales, IT support, as well as research, development, and manufacturing divisions. These changes affect various legal entities and employment types, and compensation packages are not standardized.
Special attention is being given to the R&D division. A former employee of Mercedes-Benz's Chinese office noted that their contract was not renewed upon expiration. Sources indicate that job cuts in the research and development sector are often implemented through contract non-renewals, project cancellations, or role redistributions rather than formal layoffs.
Common questions
- Which Mercedes-Benz divisions in China are affected by job cuts?
- The cuts impact R&D, manufacturing, IT, auto financing, and sales divisions. The R&D sector faces changes primarily through contract non-renewals.
- What is the goal of Mercedes-Benz's workforce changes in China?
- The company aims to optimize employment structure and reduce costs. Cuts are implemented without a unified compensation system and affect various forms of employment.
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