Mercedes-Benz Cuts China Workforce to Achieve Cost-Reduction Goal
Mercedes-Benz is cutting 10% to 15% of its employees in China's sales and finance subsidiaries as part of a broader effort to reduce workforce costs by a quarter by 2027, a person with direct knowledge of the matter said. The German luxury carmaker has also announced further cost-cutting measures globally amid declining earnings due to price competition in China and rising global trade tensions. Mercedes is doubling down on partnerships with local suppliers in China to improve competitiveness.
- This workforce reduction strategy reflects the growing trend of established foreign automakers adapting to changing market conditions by implementing more targeted cost-cutting measures in their largest markets.
- Will these cost-reduction efforts ultimately lead to a shift in Mercedes-Benz's product offerings, potentially altering its competitive stance in the global automotive industry?