Revving down: Nissan shifts gears with Thai job cuts
Nissan Motor Corporation is gearing up for a major reshuffle in Thailand, as the automotive giant plans to slash or relocate around 1,000 jobs amidst its sweeping global workforce reduction strategy.
This hard-hitting news comes from insider sources who leaked the story to Reuters, albeit under the cloak of anonymity due to their lack of authorisation to go public.
The under-fire carmaker is set to partially halt operations at its Thailand Plant No. 1, out of the two assembly plants in the country. The remaining production efforts will be shifted to Plant No. 2 by next September. While a Nissan spokesperson refused to dish out details on potential job cuts, they did confirm the ongoing consolidation aimed at upgrading facilities, with no plant set to close.
In an attempt to keep spirits up, the spokesperson assured the press, “Plant No. 1 continues to operate as our major production site in Thailand.”
This dramatic shake-up follows Nissan’s announcement earlier this month of plans to slash 9,000 jobs globally after reporting disappointing half-year earnings. Over in the United States, a slice of the workforce, around 6%, is tapping out early with retirement packages at the ready.
Located in Samut Prakan province, just outside bustling Bangkok, these Thai plants boast significant production capacity—Plant No. 1 can churn out 220,000 units at full throttle, while Plant No. 2 can handle 150,000, making Thailand Nissan’s heavyweight champion in Southeast Asia.
However, storm clouds loomed as sales took a nosedive by 30% to about 14,000 units in the last financial year ending March. Despite Japanese automakers like Toyota and Honda traditionally ruling the Thai roost, the tide is turning with the rapid rise of Chinese competitors such as BYD and SAIC flexing their electric vehicle muscles.
Not just a local affair, these plants also manufacture export-worthy SUVs, including the Kicks model for neighbouring Southeast Asian markets and the Terra for the Middle East and Africa, marking Thailand as a crucial cog in Nissan’s international machine.
Fear and uncertainty grip the Thai workforce, as the countdown begins to see who will be left standing when the dust finally settles.
