Mazda plans to offering buyouts to US employees and may make mandatory job cuts as the appreciating yen affects the company’s profits.
Spokesman Jeremy Barnes told Bloomberg News workers at Mazda’s headquarters in Irvine, California, would be notified about buyout options next week. There are 701 employees and Barnes would not say how many cuts were sought. Cuts would be compulsory if not enough people volunteer for buyouts.
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The move came after the company reported a 48% year on year increase in US sales in February but it is struggling as the most export-reliant Japanese carmaker due to the high yen.
Mazda has forecast a JPY100bn (US$1.2bn) annual loss after the yen appreciated against all major currencies during 2011. It said last year that it plans to stop making 6 sedans at the Flat Rock, Michigan, plant shared with Ford.
