Honda announces more job cuts, cuts production by another 56,000

Honda today announced another round of job cuts in its hometown of Japan as it cuts production to keep inventory levels low. The no.2 Japanese automaker said that it will cut a total of 3,100 jobs. The move will bring the number of temporary workers at Honda to zero – a group that was recently reduced by 1,200.

Honda also said that it will cut production in Japan by another 56,000 units due to the global economic condition that is hurting new vehicle purchase. It now plans to produce 1.168 million vehicles in Japan during the fiscal year ending in March, down from earlier goals of 1.31 million vehicles.

Rival Nissan said that it will also be cutting its temporary work force to zero by the end of March. It currently employs some 2,000 temporary workers. Toyota also said it will cut its temporary work force in Japan by half – from 6,000 to 3,000.

Source: Detroit News