With its parent company preparing for its worst losses in more than a decade, Mazda Motors of America will begin the first in a series of what have been described as “substantial” job cuts this week.
Though the maker has declined to discuss precise numbers, the first step will come tomorrow when Mazda discloses details of a first round of “voluntary” layoffs. The maker is expected to follow with additional, involuntary cuts by sometime in April, according to sources familiar with the plan.
The move is the result of “the global headwinds” the company is facing, spokesman Jeremy Barnes confirmed earlier this month.
The Japanese maker has forecast a loss of about 100 billion yen, or $1.2 billion, for the fiscal year ending March 31, its worst deficit in 11 years. Mazda Motor Corp, CEO Takashi Yamanouchi recently revealed plans to raise as much as 150 billion yen through a new stock sale needed to replenish its coffers.