Generous payments are part of Mercedes’ effort to reduce its workforce to save $ 5.4 billion by 2027
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by Brad Anderson
March 22, 2025 at 09:20
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- Mercedes offers generous redemption packages to employees as part of cost reduction efforts.
- The starting offers depend on the salary and the years of service, the payments reaching six figures.
- The company plans to reduce management positions in addition to reducing administrative staff.
If you have moved from Mercedes -Benz for years and you have enough, it seems that the universe has launched a curve ball to you – and not a bad. Although the German car manufacturer does not send vacation gifts anytime soon, it offers a gentle business to encourage certain employees to stop. The company would distribute buyout offers in an effort to save 5 billion euros (equal to 5.4 billion dollars at current exchange rates) by 2027.
A payment that you cannot ignore
The offers are generous, to say the least. According to German media, Mercedes-Benz offers long-term employees six-digit payments to voluntarily leave their posts. The exact amount depends on factors such as salary and years of service. So if you plan to take the money and run, it could be worth it.
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Germany Handelsblatt says it has obtained some details on these offers via the Mercedes intranet platform. For example, a 55 -year -old team leader with a monthly salary of around € 9,000 ($ 9,700) and 30 years of work could leave with more than € 500,000 ($ 540,000). Not too shabby for a nice early retirement package, right?
Who is eligible for these golden handles?
The Mercedes-Benz group would offer these payments to up to 30,000 employees who are not directly involved in production. To put this in perspective, a 45 -year -old employee with 20 years in the company and a monthly salary of € 7,500 ($ 8,100) could pocket more than € 300,000 ($ 324,000). Even a worker in the middle of the thirties winning € 6,000 ($ 6,500) per month could be left with more than € 100,000 ($ 108,000).
The company plans to make individual written offers to the more than 30,000 employees eligible for this agreement by the end of April, with responses from July 31. If workers don’t want to leave, no pressure – they will not be dismissed. On the other hand, Mercedes also reserves the right to refuse any employee who could be attracted to the starting offers, especially if they are in an essential role, because they seem to keep as many talents as possible.
So why does Mercedes do that? These packages are on the table because the existing administrative staff is protected from layoffs until the end of 2034, thanks to previous agreements. In addition to linking these jobs, the company also provides for a separate program to reduce managerial positions at the department and higher level, hoping to reduce a “disproportionate” number of management jobs.
