TMTPOST -- Mercedes-Benz China initiated a significant round of layoffs on Wednesday, with an estimated 15% of its workforce affected. The layoffs primarily impact the sales and automotive finance divisions, particularly within Mercedes-Benz (China) Automotive Sales Co., Ltd. and Mercedes-Benz Automotive Finance Co., Ltd. The R&D division has not been affected by this round of cuts. The employees being let go are largely senior staff with "open-ended" contracts and have been with the company for over five years. Compensation packages for the laid-off employees include N+9 (severance) along with additional payments of 3 to 4 months' salary for those who are unable to secure a new position within two months, bringing the maximum compensation to N+11. This move comes after Mercedes-Benz Group's financial report on February 20 revealed a 4.5% decline in global revenue for 2024, totaling €145.6 billion. Earnings before interest and taxes (EBIT) plummeted by 31% to €13.6 billion, and net profits dropped 28% to €10.4 billion. China, as the company's largest single market, saw a 6.7% drop in sales to 714,000 vehicles, contributing significantly to the overall global decline in performance.