Mercedes-Benz Opens Voluntary Buyouts for German Support Staff From December

Mercedes-Benz Group AG will offer a new voluntary buyout program for support staff in Germany starting in December, after cutting its cars unit's adjusted return on sales outlook to 2% to 3% for the year. MarketScreener reported the program on October 28, 2026, in a story by Dominic Chopping.

Kallenius Cites China and Fourth-Quarter Costs

The program covers "indirect functions" in Germany, the company said. Mercedes-Benz had cut its expectations for the year on Tuesday, warning of a worsening market in China and higher fourth-quarter costs, including for raw materials. It now expects earnings before interest and tax at the prior-year level of 5.82 billion euros ($6.47 billion).

"Market conditions have become even more challenging over the course of the year, particularly in China," Chief Executive Officer Ola Kallenius said Wednesday. "With more product launches ahead and AI changing the way we work, we are focused on building a faster, more efficient and even more competitive Mercedes-Benz."

Western automakers are contending with intense competition in China, where many manufacturers have engaged in a prolonged price war to entice customers, according to akta.pro company records. Mercedes-Benz said a consistent focus on costs and strong contributions from its vans and financial services businesses have helped counter these headwinds. The carmaker expects to benefit from the launch of more than 40 new models between 2025 and 2027 and from efforts to intensify global productivity measures focused on its German sites.

Last year, the company outlined plans to become more efficient through measures including job cuts and shifting some production from Germany to lower-cost countries such as Hungary. It is also working to lower energy costs, increase automation and decrease logistics expenses to cut the production cost of each vehicle. Mercedes-Benz said it is using artificial intelligence to increase speed, productivity and efficiency across all functions, including research and development, production, sales and administration.

The company said it is seeing "clear momentum" from its new model portfolio, with customer demand for the new electric portfolio remaining strong and order books for key models in Europe extending well into 2027. Mercedes-Benz had prereleased third-quarter EBIT of 1.77 billion euros, up from 750 million euros a year prior, and an adjusted return on sales for its cars business of 2.5%, down from 4.8%. Revenue declined 4.5% to 30.7 billion euros.

Mercedes-Benz's Earlier Cost-Cutting Steps

On October 23, 2026, Mercedes-Benz announced a productivity offensive for Germany that proposed employees work more for the same pay and said it would restart its severance program for German employees starting in December, Wiwo reported. The works council and IG Metall union oppose the cuts. FinanzNachrichten.de reported the same day that Mercedes-Benz plans to reduce temporary workers in Germany, with about 3,000 in Sindelfingen, Bremen and Rastatt, aiming to save €800 million annually by cutting unpaid work and bonuses and raise margins by about one percentage point.

On October 27, 2026, Mercedes-Benz cut its 2026 profit margin outlook for its core cars division, citing China's challenging market and higher fourth-quarter costs, MarketScreener reported. The adjusted return on sales moved to 2%-3% from previous guidance of 3%-5%.