Mercedes-Benz started layoffs in China, involving sales and automotive finance businesses.

Automaker Mercedes-Benz has launched a layoff plan in China, involving the sales and automotive finance systems, with a layoff rate of approximately 15%. This layoff mainly targets some employees of Mercedes-Benz Auto Sales Co., Ltd. and Mercedes-Benz Auto Finance Co., Ltd. According to sources familiar with the matter, the automaker has started layoffs, including not renewing contracts for some fixed-term employees, but the pace of layoffs has accelerated this month. They stated that Mercedes-Benz's plan may change, and the company has not made a final decision on the scope of layoffs, with the number of layoffs possibly being less than 15% of the total number of employees. Mercedes-Benz's decision reflects the challenges foreign automakers face in China. Major traditional brands have rapidly lost market share, while domestic brands like BYD Company Limited have won consumer favor with faster launches and higher-tech electric cars. In addition, Chinese consumers have become more cautious with their spending. Mercedes-Benz stated last month that sales in the Chinese market declined by 7% last year. In response to rumors of "large-scale layoffs at Mercedes-Benz in China," Mercedes-Benz China released a statement today stating that the integration or reduction of business will inevitably involve the work arrangements of some employees. Mercedes-Benz China will strictly adhere to relevant laws and regulations, maintain a frank, cooperative, and responsible attitude, and provide affected employees with follow-up plans that are as reasonable and legal as possible. According to the statement, Mercedes-Benz China will more deeply apply new digital technologies to enable business operations, improve operational efficiency, and streamline business processes. "We will also adjust position settings based on business needs, learn new skills with employees, and integrate or reduce redundant positions."