According to sources familiar with the matter as reported by Reuters, Nissan Motor is slated to terminate or transfer roughly 1,000 jobs in Thailand as it downsizes its production footprint in Southeast Asia, as part of its global workforce reduction strategy.
The automaker is set to scale back operations at its Thailand Plant No.1, merging operations with Plant No.2 by September of the following year.
Although the vehicle manufacturer’s representative declined to comment on the reported job cuts, they confirmed partial consolidation was in progress owing to equipment upgrades, with no closures of factories planned, and added that Plant No. 1 would continue to play a significant role in Nissan’s Thai operation.
Earlier this month, Nissan announced a plan to cut 9,000 jobs globally following disappointing half-yearly earnings. In the US, approximately 6% of local employees will depart from the company by year’s end through early retirement packages.
Nissan’s two Thai plants, located near Bangkok, have a combined production capacity of around 370,000 units, making Thailand the automaker’s largest production center in Southeast Asia.
However, sales in the country have declined by 30% to roughly 14,000 units in the financial year ending in March, as Chinese automakers like BYD and SAIC gain traction with their EV offerings.
