Car industry Mercedes-Benz pays severance pay of 500,000 euros in some cases for job cuts
The German car manufacturer Mercedes-Benz is offering lavish severance payments for the planned job cuts in administration. According to circles familiar with the matter, sums of over 500,000 euros are possible if long-term employees leave the company.
21.03.2025, 16:14
SDA
As employees are protected from redundancies until the end of 2034 by a job security agreement, the car manufacturer must offer attractive financial incentives in order to implement the job cuts, which are part of a comprehensive cost-cutting program. The German newspaper "Handelsblatt" had previously reported.
A Group spokeswoman in Stuttgart said that the terms of the redundancy program would not be made public. The Group is offering attractive options, for example to continue one's career outside the company or to move to a different phase of life. The company has not yet provided information on the number of employees who are to leave the Group.
According to the "Handelsblatt" newspaper, a 55-year-old team leader with a gross monthly salary of around 9,000 euros and 30 years with the company can expect a severance payment of more than 500,000 euros. A 45-year-old clerk who has worked for Mercedes for 20 years and receives around 7,500 euros gross per month could expect to receive more than 300,000 euros.
The car manufacturer had already set up similar programs with severance payments in previous years. However, the sums were somewhat lower. According to previous information, Mercedes-Benz wants to save around 5 billion euros by 2027. In order to become more competitive, the company had agreed a comprehensive package of measures with the General Works Council.
