Beijing Mercedes-Benz Sales & Service Co. plans to reduce its workforce from about 900 to under 600 through two rounds of adjustments, with roughly 10% of the process already completed, according to sources.
The move is not an isolated case. Since 2025, Mercedes-Benz’s operations in China have carried out personnel optimization across multiple business units, including auto finance, sales, IT back-office functions, as well as R&D and manufacturing. The adjustments span different entities and employment arrangements, with no unified compensation framework.
The R&D division is one of the key areas affected. A recently departed employee from Mercedes-Benz China’s R&D team said their contract was not renewed upon expiration. Multiple sources said headcount changes in R&D are more often implemented through non-renewal of contracts, business contraction, and staffing adjustments, rather than formal layoffs under a unified framework. [IThome, in Chinese]