Mercedes-Benz has begun laying off staff mainly from its sales and financing units in China, becoming the latest foreign carmaker seeking to control costs and scale back its workforce after reporting poor sales in the world’s largest auto market, multiple media outlets have reported. About 15% of its workforce in China are impacted by the layoff round, especially those from Mercedes-Benz Automobile Finance Co and Beijing Mercedes-Benz Sales Service Co, sources told Bloomberg on Thursday. The news comes after the German luxury car manufacturer reported a 30% slump in earnings last year, and expect a profit margin of just 6-8% from its car business this year, having announced a reduction in production costs by 10% through 2027. Sales of Mercedes-Benz in China, its largest single market, dropped 6.7% to approximately 714,000 units last year. A growing list of global automakers have reportedly taken cost-cutting measures due to rising competition from Chinese counterparts, including General Motors, Porsche, and Honda. [TechNode reporting, Bloomberg]
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