German car company Mercedes-Benz and its subsidiaries plan to cut up to 15 percent of their jobs in China, particularly in the financial and sales departments.
Sources told Bloomberg news agency the reason is increasing competition in China, the world’s largest car market.
According to Mercedes-Benz’s website, 12,000 people worked at the car company in Beijing last year. According to those involved, the most significant blows are being felt in the car financing branch. The financial department of the German company is struggling to compete with Chinese institutions, including state banks. These banks can offer more attractive car loans to buyers.
The car manufacturer has already started cutting jobs, including not extending contracts for temporary employees.
Mercedes-Benz warned last week of a drop in profits this year. Like other European carmakers, the group struggles with falling demand in key markets such as Europe and China. Part of the decline in sales is also due to the difficult transition to electric driving.
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