Mercedes-Benz Faces Uphill Battle in China: Layoffs Announced Amidst Plummeting Sales
Mercedes-Benz is cutting approximately 15% of its workforce in China following a steeper-than-expected drop in sales, as domestic competition intensifies. The layoffs, mainly affecting the sales and financing departments, come as part of a broader strategy to cut production costs by 10% by 2027 and to maintain a viable profit margin. With a 30% plunge in earnings from 2024, this move mirrors similar strategies by automakers like GM, Porsche, and Honda. As Mercedes-Benz navigates these challenges, questions about the future of foreign automakers in China take center stage.
Feb 27