Nissan Motor has announced plans to eliminate 1,000 jobs in Thailand as part of its broader strategy to streamline operations and address underperformance. The decision is a key component of the company’s global restructuring plan, which aims to cut 9,000 positions worldwide.
The job cuts in Thailand are linked to Nissan’s move to consolidate production activities. The automaker plans to merge operations into its Plant No. 2, located near Bangkok, by September 2024. Currently, Nissan operates two facilities in Thailand, with annual production capacities of 2,20,000 and 1,50,000 vehicles.
By streamlining its manufacturing footprint, Nissan aims to address overcapacity and optimise efficiency in one of its key Southeast Asian markets.
The job reductions in Thailand align with similar efforts globally. In the US, approximately 1,000 employees are taking early retirement as part of Nissan’s push to cut costs and enhance its competitive edge. The company has faced pressure to restructure following weaker-than-expected earnings for the July-September period.
Nissan’s workforce reductions are indicative of a broader trend in the automotive industry. Automakers worldwide are grappling with economic challenges, shifting market demands, and rising competition, particularly in the transition to electric vehicles. Streamlining operations and cutting costs have become critical to maintaining financial stability and market relevance.
For Nissan, these moves are aimed at improving profitability and positioning the company for long-term growth. By addressing inefficiencies and recalibrating production strategies, Nissan hopes to solidify its standing in a rapidly-evolving industry.
