Mercedes: Employees Might Receive Up To 500,000 Euros In Severance Pay

German car manufacturer Mercedes-Benz wants to reduce the number of employees to save around five billion euros by 2027 and is offering severance packages of 500,000 euros to employees who decide to voluntarily leave the company.

The severance program, called “Next Level Performance” (NLP), begins in April and runs until March 2026, Politika reports, citing Handelsblatt.

According to the calculation, a 55-year-old Mercedes team leader with a gross salary of €9,000 and 30 years of service can expect more than half a million euros in severance pay. A 45-year-old employee at a German company with 20 years of service and a gross income of €7,500 would receive around €300,000, the German newspaper added. The offer is only valid if both parties agree to the termination of the employment relationship.

Earlier in March, the company reached an agreement with the labour union on a savings program.

Mercedes-Benz has pledged not to lay off workers for operational reasons until 2035, but employees have in return given up on salary increases, and their profit bonus will be reduced this year, Bild reports.

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