Nissan plans to cut 1,000 jobs in Thailand as part of a global restructuring initiative. This move is part of a broader strategy to address underperformance and streamline operations, with a total of 9,000 positions set to be eliminated worldwide.
The job cuts are tied to Nissan’s plan to merge production into its Plant No. 2 near Bangkok, set to be completed by September 2024. Currently, Nissan operates two plants in Thailand with a combined production capacity of 370,000 vehicles annually.
By reducing overcapacity and optimizing operations, Nissan aims to improve efficiency in its key Southeast Asian market. This move is part of efforts to enhance competitiveness and lower costs across its global operations.
These reductions align with similar cost-cutting actions elsewhere. In the U.S., around 1,000 employees are retiring early as part of Nissan’s drive to improve profitability after weaker-than-expected earnings in recent quarters.
The job cuts reflect a broader trend in the automotive sector, where companies face economic and competitive pressures. Streamlining operations and reducing costs are crucial for staying financially stable amid the shift to electric vehicles and evolving market demands.
