It Seems That Offering Up to $580,000 Is Sufficient to Prompt Auto Workers to Resign | Carscoops

      Thousands of employees have accepted significant cash offers to leave their positions as part of an extensive cost-reduction strategy that's yielding quicker results than anticipated.

      As of October 18, 2025, approximately 4,000 workers at Mercedes have taken severance packages worth as much as €540,000 ($580,000). This initiative is included in a €5 billion cost-saving plan scheduled to continue until 2027. Mercedes intends to optimize its operations in light of the evolving industry environment.

      Car manufacturers typically strive to avoid involuntary layoffs whenever possible due to the complications, costs, and negative impact on employee morale. Mercedes-Benz seems to have developed an alternative approach, providing attractive compensation to employees willing to resign, which so far appears to be beneficial.

      Reports indicate that around 4,000 employees have accepted these offers, some receiving as much as €540,000 ($580,000) to exit the company. Although these amounts are substantial for individuals, the overall financial outlook for Mercedes is promising, potentially leading to savings in the billions of euros.

      Who Is Accepting the Offer?

      The buyout program, initiated last April, targets nearly all employees within the company, including office personnel, IT experts, engineers, and mid-level managers. Many of the employees eligible for these buyouts are secured against layoffs until 2034, leaving Mercedes with few options to encourage earlier departures apart from such offers.

      To entice employees, the buyout offers had to be exceptionally attractive. According to Handelsblatt, some employees were also given a 'turbo-bonus' for making a quick decision to leave. Long-serving workers have been reported to receive six-figure sums in these instances.

      For instance, a 55-year-old team leader with 30 years at the company, earning about €9,000 ($9,700) monthly, could take home nearly half a million euros or almost $600,000 by exiting early. Even mid-career employees are reportedly receiving amounts of €100,000 ($117,000) or more, depending on their salary level and years of service.

      How Many Are Eligible?

      Between 30,000 and 40,000 employees qualify for this buyout offer. Mercedes retains the right to deny requests if individuals hold crucial roles that the company does not wish to fill again after their departure. So far, only a few requests have been turned down.

      The program is set to continue until March 2026, and the company anticipates an increase in departures as the deadline approaches. Overall, this initiative is part of a broader cost-cutting strategy aimed at achieving roughly five billion euros in savings by 2027, as the company faces various challenges, including a 12 percent decline in sales during the last quarter.

      Will a leaner workforce contribute to greater stability for Mercedes in the rapidly changing industry? The leadership in Stuttgart certainly hopes so.

      Source: Handelsblatt