Stuttgart car manufacturer: Mercedes makes more profit after weak previous year's quarter

Mercedes-Benz is not only laying off employees in administration and development, but also in production facilities, as the company's severance programs reveal. Intranet entries show that voluntary programs have been running in Stuttgart-Untertürkheim and Berlin component plants since early September, until November. It is known that the automaker intends to cut jobs indirectly, outside of production. Starting in December, employees in administration and development will again be offered severance packages.

Mercedes has reactivated its voluntary program, previously running from April 2025 to March 2026. While it is not widely known within the group, the automaker has been downsizing staff at its core plant in Untertürkheim and in Berlin via severance programs for years. Employees have received six-figure sums. In Untertürkheim, a voluntary program has been running every autumn since 2019, while it was introduced in Berlin in 2022. Both sites are expected to provide severance payments until the end of 2029, in the autumn.

Mercedes aims to reduce personnel costs with its "Next Level Performance" program, which seeks to save expenses in production, materials and personnel. Since this summer, the company has intensified its cost-cutting measures in Germany, calling it a "Productivity Offensive." The Bavarians are facing poor sales in China, US tariffs, and the consequences of management errors.

Sales and profits have been declining for years. As there is employment security in Germany until the end of 2034, the DAX company must offer attractive options for employees to voluntarily terminate their contracts.