Mercedes-Benz to cut “surplus” 2,000 workers in Brazil

As the Brazilian automotive industry struggles to balance low demand to current production volumes, Mercedes-Benz announced this week a volunteer layoff plan for its plant in the city of Bernardo do Campo.

According to the company, it is looking to manage what it calls as a 2,000 workers “surplus” at its plant. Media reports said the plant employees about 10,000 people. Out of this total, 7,000 work in the company’s automotive production lines.

As demand in the domestic automotive industry remains weak, Mercedes is offering up to BRL 65,000 (US$20,380) in incentives for workers who join the plan, depending on their seniority and time worked at the company. Generally, workers who join a volunteer layoff plan are offered a severance package in addition to the severance payments provided by the law.

Mercedes’ volunteer layoff plan comes two weeks after workers at the plant rejected a proposal to work at lower wages and reduced shifts.

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