Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Mercedes-Benz, a German car manufacturer, announced a voluntary severance programme possibly cutting its workforce by several thousand employees. By the end of April 2025, around 40,000 Mercedes employees will receive severance offers via email. A similar approach was used earlier by parent company Daimler, which aimed to cut 15,000 jobs. In the end, about 4,000 employees (26%) left through that programme ((Daimler 2020 - DE). According to internal sources, Mercedes is now targeting 20,000 job cuts. Based on the previous 26% success rate, this could mean roughly 5,400 employees may leave through the current severance programme.
The job losses are part of a cost-cutting and efficiency programme that the company set up to deal with stagnation in its current focus segment of electric and luxury vehicles. With the programme, the company aims to save around five billion euros per year. Further, cost-reduction measures will be enforced, reducing the benefits of the remaining employees. The severance packages depend on the employee's position in the company and can reach amounts of up to €500,000.
Mercedes recently extended its obligation to abstain from direct dismissals due to operational costs until 2034, explaining the alternative strategy now used to reduce staff. The programme follows the principle of double voluntariness: both the employee and the company have to agree to the severance conditions. As of April 2025, Mercedes employs 175,000 workers.
Updated, 17/10/2025 On 17 October 2025, it was reported that around 4,000 employees have left Mercedes-Benz through the current severance programme that started in April 2025 and is running until March 2026. This number is below Mercedes' target. The programme mainly targets engineers, as well as IT and administrative personnel.
Updated, 17/04/2026 According to press reports, around 5,500 employees have left the company in Germany by the end of March 2026. The job losses are part of a cost cutting and efficiency programme that the company set up to deal with increasing competitive pressure as well as high investments in electromobility and digitalisation. The company aims to save around five billion euros per year. Mercedes Benz had launched a severance pay programme in April 2025 that ended at the end of March of 2026. The programme was aimed at employees not working in production but in other departments, e.g. administration, development or marketing. Around 40,000 employees in Germany were eligible to participate in the programme.
Eurofound (2025), Mercedes-Benz, Internal restructuring in Germany, factsheet number 204515, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/204515.
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