Mercedes-Benz Cuts 3,600 Jobs Amid Cost Pressures

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] German automaker Mercedes-Benz is implementing a workforce reduction of approximately 3,600 employees in the Brazilian market.

According to major foreign media on the 6th (local time), Mercedes-Benz has begun restructuring targeting employees working at its truck and bus manufacturing plant in S?o Paulo, Brazil. Through this restructuring, Mercedes-Benz plans to lay off a total of 3,600 employees.

This restructuring appears to be aimed at improving management efficiency amid cost pressures. The company stated, "To respond to cost pressures caused by inflation and the industrial paradigm shift toward the electric vehicle era, we plan to outsource operational elements such as production facilities and workforce."

Mercedes-Benz intends to prioritize outsourcing to local companies for the production of parts such as front axles and transmissions, as well as logistics and maintenance services.

Previously, Mercedes-Benz reduced 2,200 regular employees and 1,400 contract workers at its S?o Bernardo plant in S?o Paulo.

Mercedes-Benz first entered the Brazilian market in the 1990s and launched a new passenger car production plant in 2016. However, due to prolonged semiconductor supply shortages and sluggish sales during the COVID-19 pandemic, the company has been conducting restructuring.

Earlier, American automaker Ford also announced plans in March to undertake large-scale restructuring.

According to The Wall Street Journal (WSJ), Ford will lay off 3,000 employees in North America and India, and plans to invest the cost savings from workforce reductions into electric vehicles and software development.

Ford explained at the time, "The background of the restructuring is the judgment that there is a shortage of specialized personnel and technology needed for software development amid the transition to the electric vehicle era."

This content was produced with the assistance of AI translation services.