Mazda is planning to reduce its current workforce by 250 employees in Europe and the United States as part of the company’s efforts to further cut costs and put a stop to its string of annual losses, according to the Nikkei newspaper. The business daily said that Mazda will reduce the workforce of its subsidiary in Germany by a third to below 200 people, and will cut jobs in the United States by 20 percent to around 550 workers.
Last month, 107 of Mazda's employees in the US signed up to take buyouts as part of the restructuring of American operations. Mazda will implement the job cuts this fiscal year, according to business daily.
Mazda, however, has no plans to implement job cuts in Japan, but plans to restructure its sales administration operations this month by relocating some employees to its headquarters in Hiroshima from its Tokyo and Osaka offices, Nikkei reported. The company posted a 48 percent drop in net profit for the fourth quarter of its fiscal year to around JPY5.1 billion yen.
Mazda blamed the net profit dive to decreasing global sales, high costs of R&D, as well as to it heavy dependence on exports that makes it vulnerable to the strong Japanese yen. As part of its cost-cutting measures, Mazda recently disclosed an agreement with Fiat to jointly develop the next generation of Miata/MX-5 and Alfa Romeo Spider roadsters using a shared Mazda platform. The joint venture, however, does not involve any equity tie-ups.