Nissan's Strategic Shift in Southeast Asia: A Closer Look

Nissan Motor plans to cut or transfer 1,000 jobs in Thailand as part of its global workforce reduction. Production will partially stop at Thailand Plant No.1 and consolidate into Plant No.2. This follows a global strategy to reduce 9,000 jobs amid declining sales in the region.

Nissan Motor is set to cut or transfer approximately 1,000 jobs in Thailand, signaling a shift in production strategies within Southeast Asia as part of its broader workforce reduction plan. Sources familiar with the development revealed details to Reuters, though they remained unidentified.

The company will partially halt production at its Thailand Plant No.1 and consolidate operations into Plant No.2 by September next year. Despite job cuts, a Nissan spokesperson assured that Plant No.1 remains active, focusing on upgrades rather than shutdowns.

This move comes on the heels of a global strategic reduction of 9,000 jobs, influenced by disappointing earnings. With two plants in Samut Prakan province, Thailand serves as Nissan's largest Southeast Asian hub, yet sales have plummeted 30% in the past financial year, partially due to rising competition from Chinese manufacturers.

(With inputs from agencies.)