Mercedes-Benz Lays Off 4,000 Employees, Provides Rp 9 Billion in Severance Pay

KatadataOTO – The storm of layoffs (layoffs) in the automotive industry seems to be far from over. A number of companies are reportedly implementing efficiency measures.

As is being done by Mercedes-Benz. They are said to be laying off thousands of their workers.

According to a Carscoops report on Tuesday (21/10), the manufacturer from Germany is offering its employees a voluntary resignation package.

The workers who accept the offer will be given a severance package of around 580 thousand US dollars or about Rp 9.6 billion per person.

Photo : KatadataOTO

“The latest news states that around 4,000 employees have agreed to the deal,” wrote the online media outlet.

This decision is considered a strategic move for Mercedes-Benz. Because it is predicted to save them billions of euros.

Moreover, the program has been offered since last April 2025. Targeting almost everyone within the company.

From office staff, IT specialists, engineers, to even mid-level managers. They have agreed to resign.

Of course, this is inseparable from the tempting offer made by Mercedes-Benz. Making them willing to leave their jobs.

The amount of severance pay given varies. Depending on the salary amount and length of service.

“About 30,000 to 40,000 employees are eligible for this offer. The program will run until March 2026,” Carscoops continued.

For your information, the employee reduction by Mercedes-Benz is part of the efficiency measures they are currently implementing.

The goal is to save on operational budgets by around 5 billion euros or the equivalent of Rp 96.9 trillion by 2027.

This cost-saving measure is being taken so that Mercedes-Benz can face various challenges. Such as competition with electric cars from China.

Nissan Did It First

It should be noted that employee reductions are not only being carried out by Mercedes-Benz. Nissan has implemented a similar measure.

The workforce reduction is planned to take place at the Nissan Automotive Europe factory in Montigny-le-Bretonneux, France.

Photo : Special

“Management and labor unions have agreed to discuss voluntary resignations before layoffs occur,” Reuters wrote some time ago.

As is known, Ivan Espinosa, the new CEO of Nissan, is taking swift steps to save his company from the brink of bankruptcy. Starting with a global workforce cut of up to 15 percent.

Then, a reduction in product capacity by up to 30 percent worldwide, down to just 2.5 million units per year. Finally, a reduction in the number of factories from the original 17 locations to 10 sites.