by Mercedes is organizing generous buyout packages for employees as part of cost-saving efforts.
The terms of the voluntary retirement depend on salary and tenure, with payouts reaching six figures.
The company plans to reduce management positions, other than regular administrative employees.
If you have been working at Mercedes-Benz for many years and are already tired, it seems like life has thrown you a curveball—which isn’t a bad one. Although the automaker won’t be sending out New Year’s gifts anytime soon, they are offering a pretty attractive deal to encourage some employees to resign. According to reports, the company is handing out buyout offers as part of efforts to save €5 billion (equivalent to $5.4 billion at the current exchange rate) by 2027.
A payout you can’t ignore
The deals are generous, to say the least. According to German media reports, Mercedes-Benz is offering long-term buyout payouts in six figures for voluntarily leaving their positions. The exact amount depends on factors such as salary and length of service. Therefore, if you intend to take the money and run, this might be worth your attention.
More details:
A German newspaper reports that it has obtained some details about these offers through Mercedes’ internal portal. For example, a team leader aged 55, with a monthly salary of approximately €9,000 ($9,700) and 30 years on the job, could receive over €500,000 ($540,000). Not bad for a nice early retirement package, right?
Who qualifies for these golden handshakes?
Reportedly, the company is offering these payouts to up to 30,000 employees who are not directly involved in production. For comparison, a clerk aged 45, with 20 years of service in the company, and a monthly salary of €7,500 ($8,100), could earn over €300,000 ($324,000). Even a worker in their mid-30s, earning €6,000 ($6,500) per month, might leave the company with a sum over €100,000 ($108,000).
The company plans to send individual written offers to more than 30,000 eligible employees by the end of April, expecting responses by July 31. If employees don’t want to leave the company, there’s no pressure—they won’t be dismissed. On the other hand, Mercedes also reserves the right to refuse any employee who may be attracted by the buyout offers, especially if they hold a key position, as there is a task to retain as much top talent as possible.
Why is Mercedes doing this? These buyout packages are a hot topic because existing administrative employees are protected from layoffs until the end of 2034, thanks to previous agreements. In addition to terminating these positions, the company also plans a separate program to reduce manager positions at the department level and above, hoping to cut the “excess” number of management positions.
