Saturday, November 29, 2008

Japan layoffs thousands of auto workers



apan layoffs thousands of auto workers

The global credit crisis is casting a dark cloud over Japan's automakers.

Nissan Motor, less than a month after announcing it would cut back production by 75,000 units, has reviewed the reduction plan and now says a total of 147,000 fewer cars will roll out of its factories until March next year. Nissan says it will lay off 1,500 non-regular workers, 500 more than its initial estimate.

In all, eight Japanese car makers have decided to reduce production by 700,000 cars until year's end. This is the first time in five years that production figures will pale next to that of sales.

They are leading to a surging number of people seeking unemployment benefits. In March, the number of recipients hovered below 500,000, but as of September it jumped by more than 100,000.

Source: Digital Chosunilbo

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