Hyperdrive
Honda Cuts Jobs in China, Suspends Production at Three Plants
- More than 2,000 workers are affected, local media reported
- Production halted for about two weeks to reduce inventory
Employees at Dongfeng Honda assembly line in China's central Hubei province in 2020.
Source: AFP/Getty Images
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Honda Motor Co. is slashing jobs and has paused production at three of its plants in China, as it seeks to trim inventories and work on a broader shift in strategy in the world’s largest car market.
The Japanese automaker offered redundancy packages to more than 2,000 workers at its joint venture with China’s state-owned Dongfeng Motor Group Co., according to local media reports. The staff optimization is part of a strategy to ensure sustainable operations and speed up its transition to electric vehicles, Dongfeng Honda said in a statement via social media on Tuesday.