Nissan Motor is set to cut or relocate approximately 1,000 jobs in Thailand as it scales back its operations in Southeast Asia. This move is part of its broader global workforce reduction strategy, according to two sources who spoke to Reuters on Friday.
The company plans to partially cease operations at its Thailand Plant No.1—one of its two vehicle assembly facilities in the nation—and will merge these operations with those at Plant No.2 by September of the following year.
The sources requested anonymity as they are not authorized to discuss these plans publicly.
While a Nissan spokesperson refrained from commenting directly on the job cuts, they noted that the partial merging of operations is part of an effort to upgrade equipment. They assured that no facilities would be shut down.
“The Plant No.1 continues to operate as our major production site in Thailand,” the spokesperson stated.
Earlier this month, the struggling automaker announced a worldwide reduction of 9,000 jobs following lower-than-anticipated earnings for the first half of the year.
In the United States, around 6% of Nissan’s local workforce will depart by year’s end, having accepted early retirement packages.
Both Thai plants are located in Samut Prakan province. Historically, Plant 1 boasted a production capacity of approximately 220,000 units, whereas Plant 2 had a capacity of 150,000 units, making Thailand Nissan’s largest production hub in Southeast Asia.
Nissan’s sales in Thailand have fallen by 30%, totaling about 14,000 units in the last fiscal year, which ended in March.
While Japanese car manufacturers like Toyota and Honda have long dominated the Thai market, Chinese companies including BYD and SAIC are quickly gaining ground with their electric vehicle offerings.
The two Thailand plants also produce SUVs for export, such as the Kicks, which is sent to other Southeast Asian countries, and the Terra, which is shipped to the Middle East and African markets.
