Honda to Cut 3,100 Jobs in Japan

Will reduce production as well

Honda Motor Co. said on Jan. 16 it was cutting more than 3,000 jobs at home and reducing domestic production because of a slump in demand due to the economic downturn.

The country's number two automaker will reduce its output by 56,000 vehicles for the rest of the financial year to March, lowering domestic production to 1.168 million vehicles, down 10% from the previous year.

Honda said it would not renew contracts with 3,100 temporary workers in Japan by the end of April.

The latest cutbacks are in response to "a rapid change in the global market environment," the company said.

In December, Honda said it planned to cut domestic production by 54,000 cars and would hold off on the release in Japan of the Acura luxury brand, which was planned for 2010.

Honda last month cut its full-year net profit forecast by more than half due to a soaring yen and the global economic slowdown. It also announced its shock pullout from Formula One because of financial difficulties.

Copyright Agence France-Presse, 2009

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