As declining vehicle sales force automakers to scale back production, Stellantis and Mercedes-Benz are offering vastly different severance deals to employees affected by layoffs.
In the U.S., Stellantis—the Franco-Italian-American automotive group—has agreed to pay up to €64,000 ($72,000) plus six months of medical benefits for voluntary contract terminations. The deal varies based on tenure, with €47,000 offered to employees with 1–15 years of service, rising to the maximum for those with over 25 years. The Ohio and Illinois plants, which produce the RAM 1500 and Jeep Wrangler, are under particular scrutiny. Stellantis laid off 33,000 workers in 2023 and another 11,000 in 2024.
Meanwhile, Mercedes-Benz is downsizing in Europe as part of a strategy to cut €5 billion in operating costs by 2027. Severance packages there are dramatically higher, with reports of offers reaching up to €500,000 for veteran team leaders. A 30-year employee earning €6,000/month could receive around €100,000, while office workers with two decades of service are being offered €300,000 to exit.
While both companies are facing the same pressure—declining demand—they’re taking very different financial approaches to managing their workforce transitions.
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