A legendary company launches a voluntary redundancy program, offers to pay employees up to half a million if they leave voluntarily

Mercedes-Benz is taking an unusual approach to restructuring—paying employees to walk away.According to the German business outlet Handelsblatt, the luxury automaker has launched a voluntary departure program offering some workers up to €500,000 (about $580,000) in compensation if they agree to leave the company.

The offer has already reached around 40,000 employees, and roughly 4,000 have accepted so far.

A cost-cutting plan for the electric future

The initiative, known as “Next Level Performance,” is part of a larger €5 billion cost-reduction strategy running through 2027.The goal: streamline the company’s workforce as Mercedes shifts toward electric models amid declining demand and rising raw material costs.

Company executives see the move as a way to prepare for an industry in transition—balancing investments in electric mobility while maintaining some traditional combustion-engine production during the shift.

How much can employees get?

Payouts under the plan vary by age, seniority, job title, and salary.For instance, a 55-year-old team leader with 30 years at the company and a monthly salary of €9,000 could walk away with over €500,000.

The program began in April 2024 and will remain open until March 2026, giving workers time to consider whether to stay or take the golden handshake.

Mercedes-Benz CEO: adapting without forced layoffs

Mercedes-Benz Group CEO Ola Källenius emphasized that the goal is to avoid mandatory layoffs while preparing for a rapidly changing market.

He noted that while the future of the industry is clearly heading toward zero-emission vehicles, it’s equally important to keep a balanced production strategy. Källenius highlighted the company’s commitment to both innovation and stability for its workforce.

Investing in electric mobility

Even as it restructures, Mercedes-Benz is pushing ahead with electric production.On October 13, the company inaugurated a new production line in Sebeș, Romania, dedicated entirely to electric vehicles—a project backed by more than €100 million in investment.

This expansion underscores Mercedes’ long-term strategy: cut costs and reallocate resources toward an all-electric future, without resorting to abrupt or painful layoffs.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.