Mercedes restarts German job cuts as China sales slump hits profits

Mercedes-Benz CEO Ola Kaellenius announced Wednesday the restart of a voluntary redundancy programme in Germany starting December, as the carmaker joins Volkswagen and BMW in issuing profit warnings. Germany accounts for just 15% of Mercedes sales but two-thirds of its workforce and fixed costs.

The move comes after Mercedes became the third major German automaker to warn on full-year profits, citing a collapse in China—the world’s largest car market—where over 100 competitors are driving an intense price war. Despite Q3 net profit rising 30% to €1.52 billion ($1.69 billion), overall sales fell 4.5% to €30.7 billion.

BMW plans 8,000 job cuts by 2027, while Volkswagen targets 120,000 global reductions by 2030. Kaellenius noted labour costs in China, Hungary, Romania and the US are all lower than Germany, signalling continued production shifts eastward.

For Nigeria, the shift reflects broader manufacturing pressures that could affect global investment patterns and technology transfer to emerging markets.

Will the German auto industry’s restructuring accelerate EV technology adoption in markets like Nigeria, or deepen reliance on used imports?

SOURCE: https://www.channelstv.com/2026/10/28/mercedes-to-cut-more-jobs-as-chinese-competition-bites/