Mazda Motors of America Begins Cuts : Work force: Sources say up to 200 of 1,250 jobs could be lost through layoffs, voluntary separation and attrition.
Mazda Motors of America, stung by slowed sales in the United States and by its Japanese parent’s decision to cancel the Amati luxury-car line planned for the North American market, has begun a payroll-slashing program that sources say could ultimately affect 200 of its 1,250 employees.
The first round of layoff notices--reportedly 21 in the Amati division and 52 at Mazda Motors of America--were handed out Tuesday. Most of the terminated employees worked in Irvine, where MMA is based and 70% of its work force is located.
The layoffs don’t affect other U.S. subsidiaries of Mazda Motor Corp., MMA spokesman Jay Amestoy said.
Amestoy would not provide details of the MMA layoffs except to say that “fewer than 100” workers were terminated, including an unspecified number who had accepted the terms of a previously announced voluntary layoff plan.
Amestoy would not comment on reports that MMA plans to trim its payroll by 16%, or 200 positions, over the next few months through a combination of layoffs, early retirements, attrition and freezing of unfilled positions.
He said he does not know how many jobs the company hopes to pare through attrition, hiring freezes and its early retirement program, which reportedly is to be explained to employees in a package to be distributed next week.
One knowledgeable source outside the company said the layoff notices hit almost all departments and levels of employment at Mazda Motors of America, which is responsible for sales and marketing of Mazda cars and parts, including development of the domestic dealer network.
Other Mazda Motor Corp. subsidiaries in the United States are Mazda Research and Development of North America; Mazda (North America) Inc., the liaison between the U.S. operations and Japan; and AutoAlliance International Inc., a $600-million, auto-manufacturing plant jointly owned by Mazda and Ford Motor Co.
Mazda Research is based in Irvine, while the other units are in Flat Rock, Mich.
Parent company Mazda Motor Corp. is based in Hiroshima, Japan.
Despite financial problems plaguing Mazda Corp. internationally, Amestoy said, the MMA layoffs “have primarily to do with the cancellation of the Amati project.”
The Amati division employed more than 60 people. Also, dozens of workers at nearby Mazda Motors of America headquarters provided additional support services.
Mazda’s U.S. sales, Amestoy said, remain relatively strong in a recession-ravaged market.
Although Mazda truck sales in the United States are very weak--something the company has in common with most Japanese importers, in part because of stiff tariffs on Japanese-built small pickups--the company expects “to set a new passenger car (sales) record for the fifth consecutive year,” Amestoy said.
