Germany: Mercedes Also Announces “Billion-Dollar” Layoffs

The crisis in the European automotive industry, and particularly in Germany, seems to have no limits. After the famous events of Volkswagen announcing the closure of several plants and a plan to rationalize employment and wages, superior premium manufacturer Mercedes-Benz is also expected to implement its industrial plans. This is reported by the German news agency DPA, which quotes a spokesman for the Stuttgart-based group, who explains that they are targeting a restructuring plan of “several billion euros per year.”

It is not specified whether this will also lead to a reduction in the workforce: the current union plan of the Stuttgart Group does not foresee layoffs until 2029.

“The economic situation remains highly volatile around the world. Only through sustained efficiency gains can we remain financially strong and able to act. We continue on this path quietly but with utmost coherence,” the spokesperson continued, explaining in general that they will try to operate on a fixed cost basis.

One thing is for sure: European industry must figure out where it wants to go and how to deal with an increasingly uncertain economic situation, exponential growth of competitors, and the upcoming energy transition.