Mercedes-Benz Severance Programme 2026: Severance Pay & Your Rights

Job cuts at Mercedes-Benz: what is happening?

Mercedes-Benz aims to save around 5 billion euros by 2027, driven by sales pressure, heavy investment in electrification and digitalisation, and weaker margins. At the core of the job cuts was a voluntary severance programme for employees outside production (Business Insider; mbpassion, April 2026).

Unlike at VW or ZF, there is no official target number for job cuts: the company steers by its savings target instead. About one billion euros of the savings is meant to come from the severance programme.

The 2025/26 severance programme in numbers

• Duration: April 2025 to the end of March 2026.
• Target group: around 40,000 employees outside production, in administration, development and IT.
• Uptake: around 5,500 employees accepted the package.
• Amount: staggered by length of service and salary; media reports mention figures of up to €500,000.
• Early decision-makers ("turbo"): anyone who signed by the end of July 2025 received a 10% bonus plus six additional gross monthly salaries.
• Principle: double voluntariness, meaning no departure without agreement from both sides.

Your strongest card: job security until the end of 2034

An agreement with the works council (Betriebsrat) guarantees job security that rules out compulsory redundancies until the end of 2034. This shifts the balance of power clearly in your favour: Mercedes can only reduce headcount if employees leave voluntarily, and it has to pay for that "yes" accordingly. A first offer is therefore rarely the final word.

New programme round from December 2026: what's changing

In short: Mercedes-Benz is relaunching its voluntary severance programme from December 2026. This time it targets employees in administration, development and production planning. The principle of double voluntariness still applies, and compulsory redundancies remain ruled out until the end of 2034. According to reports, the trigger is weak sales in China (mercedes-fans; Elektroauto-News, 2 October 2026).

Two things stand out compared with the 2025/26 round. First, the group covered is different: alongside administration and development, this round explicitly names production planning, whereas the previous round covered administration, development and IT. Second, reports on the new round so far say nothing about an early decision-maker bonus like in 2025 (the "turbo offer" of 10% plus six gross monthly salaries). So don’t assume the 2025 terms will automatically apply again.

What this means in practice: job security until the end of 2034 remains your strongest card. Mercedes needs your signature, and that works both ways, since the company also has to agree. If you receive an offer, you have time, so use it: compare it with the figures reported from the first round (up to €500,000 depending on salary and length of service), and clarify the payout date. A programme starting in December means the severance payment may land in 2026 or 2027 depending on how the contract is structured, and under the one-fifth rule (§ 34 EStG), that timing alone can affect the amount by a four to five-figure sum.

What happens next in 2026

According to media reports, the number of departures in the first round fell short of internal expectations, and management was reportedly unhappy with the pace of job cuts (mbpassion, April 2026). With the new round starting in December 2026, that expectation has now been met: the €5 billion savings target for 2027 stands, dismissals remain ruled out until 2034, so the voluntary route is the only option left. Expect that this won’t necessarily be the last round, but don’t let that push you into deciding under time pressure: checking an offer takes far less time than regretting it.

Received a termination agreement or severance offer? Get it reviewed first

The key points to check are: the amount compared with your profile and your strong starting position, the risk of a benefit suspension period (Sperrzeit) for unemployment benefit (is the reason for leaving worded correctly?), the notice period (an earlier end date can trigger a suspension under § 158 SGB III), waiver and settlement clauses, and the tax structure (one-fifth rule, payout timing). Upload your document: the critical points are flagged within seconds, at no cost.

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