Mercedes-Benz has found a way to reduce the number of employees without forced layoffs, offering workers generous severance packages for voluntary departure.

According to the latest reports, around 4,000 employees have already accepted the offer, and some will receive as much as 540,000 euros, or 580,000 dollars, for leaving the company, writes index.hr.

Although these are large individual payouts, in the long term this solution could bring significant savings to Mercedes, which estimates that this move could save it several billion euros. Automakers generally try to avoid forced layoffs, because such processes are expensive, complex, and negatively affect the morale of the remaining employees.

The voluntary departure program was launched last April and is open to almost all employees, including office staff, IT specialists, engineers, and mid-level managers. Many of them are protected from dismissal until the end of 2034, which prompted Mercedes to offer terms that are hard to refuse. According to Handelsblatt, some workers also received a so-called turbo bonus for making a quick decision, while long-serving employees could count on six-figure amounts. For example, a 55-year-old team leader with thirty years of service and a salary of around 9,000 euros per month could receive nearly 600,000 euros in severance pay, while mid-career employees were leaving with amounts of 100,000 euros and more.

The program is open to 30,000 to 40,000 employees, and the company retains the right to reject an application if the person holds a key role. So far, very few applications have been rejected, and the number of departures is expected to grow as the deadline in March 2026 approaches.

This move is part of a broader cost-cutting strategy, with the goal of saving approximately five billion euros by 2027. Mercedes is facing challenges, including a 12 percent drop in sales in the last quarter, and it remains unclear whether a smaller workforce will ensure the company's stability in changing market conditions.

Ultimately, generous severance packages show how large corporations are increasingly using voluntary programs as an alternative to layoffs, balancing financial strategy and employee morale while at the same time planning long-term savings.