TOKYO — Nissan Motor will reduce its workforce in Thailand by about 1,000 positions through layoffs or transfers, as the automaker scales back production in Southeast Asia, sources familiar with the plan revealed on Friday. This move aligns with the company’s global workforce reduction strategy announced earlier this month, which includes cutting 9,000 jobs worldwide.
Production at Thailand Plant No.1 in Samut Prakan will be partially halted and consolidated into Plant No.2 by September 2025, the sources disclosed. Despite this, Nissan emphasized that no facilities in Thailand would be shut down.
Consolidation to Streamline Operations
A Nissan spokesperson confirmed the ongoing consolidation but refrained from commenting on specific job reductions. The representative noted that Plant No.1 remains a critical site for production in Thailand and stated that the integration aims to modernize equipment.
Thailand hosts Nissan’s two major production facilities in Southeast Asia, with Plant No.1 having a maximum production capacity of 220,000 units and Plant No.2 capable of producing 150,000 units. The country has long served as Nissan’s regional manufacturing hub, producing models like the Kicks SUV for Southeast Asia and the Terra SUV for Middle Eastern and African markets.
Declining Sales and Shifting Strategies
Nissan’s vehicle sales in Thailand fell 30% in the financial year ending March 2024, amounting to approximately 14,000 units. While traditional Japanese automakers such as Nissan, Toyota, and Honda have maintained dominance in the Thai market, emerging competition from Chinese brands like BYD and SAIC—with their electric vehicle offerings—has disrupted the industry.
The workforce reduction in Thailand mirrors Nissan’s broader strategy to adapt to shifting market dynamics and production needs. In the United States, the company has already begun a 6% staff reduction through voluntary retirement offers.
