Nissan is laying off 9000 employees globally, reducing its capacity in Southeast Asia, with its factory in Thailand being the hardest hit!
MichaelNov 22, 2024, 01:59 PM
Recently, sources have revealed that Nissan will cut or relocate around 1,000 jobs in Thailand as part of its global downsizing plan, aiming to reduce production in Southeast Asia. The company plans to partially halt production at its Thailand Plant 1 (one of the two vehicle assembly plants in the country) by September next year and consolidate operations into Plant 2.
Both of Nissan’s factories in Thailand are located in Samut Prakan Province, on the outskirts of Bangkok. Plant 1 has a maximum capacity of about 220,000 units, while Plant 2 can produce up to 150,000 units. Thailand is the company’s largest production base in Southeast Asia.
A Nissan spokesperson declined to comment on the layoff reports but stated that the company is merging some operations to upgrade equipment and will not be closing any factories. The spokesperson said, “Plant 1 will continue to serve as our main production base in Thailand.”
In early November, Nissan announced plans to lay off 9,000 employees worldwide, following a half-year earnings report that fell below expectations. Around 1,000 employees in the United States will be offered early retirement packages before the end of this year.
As of the fiscal year ending in March, Nissan’s sales in Thailand had fallen by 30%, down to about 14,000 units. While Japanese automakers like Toyota and Honda have long dominated the Thai market, Chinese manufacturers such as BYD and SAIC have rapidly gained ground with electric vehicles.
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