Japanese carmakers have announced more layoffs with Mitsubishi Motors Corp. cutting 1,100 jobs and Subaru a further 800.

Mitsubishi Motors said it would not renew contracts with one third of its temporary workers in Japan at the end of March as it reduces production to cope with sagging sales.

Fuji Heavy Industries said it would lay off 800 temporary workers in Japan in December, and reduce domestic production by 40,000 vehicles in the first quarter of next year.

“The global economic slowdown and the difficulties the auto industry is currently facing are the reasons for the adjustment,” a Fuji Heavy spokesman told AFP.

“We are seeing a serious fall in orders from overseas and domestic dealers alike. We must take measures to control our inventories,” he added.

Mitsubishi Motors aims to reduce its production in the current fiscal year to March by a further 30,000 vehicles, in addition to a reduction of 80,000 announced in October, a company spokesman said.