Honda Layoffs 2024: What to Know About the Latest HMC Job Cuts

Layoffs and Restructuring - Honda is implementing voluntary layoffs at its joint venture GAC Honda Automobile, affecting 1,400 employees or 14% of the workforce [1] - The layoffs are part of a cost-cutting strategy to facilitate continued operations in China [3] Market Challenges - Honda faces increasing competition and declining sales in China, with 2024 vehicle sales expected to drop by 13% to 1.06 million units [2] - Japanese automotive brands, including Honda, are struggling to compete with the rising popularity of Chinese domestic automobile companies [2] Strategic Shift - Honda plans to focus more on producing electric vehicles (EVs) in China, aligning with the growing popularity of EVs in the market [3] - The company is not exiting the Chinese market but is restructuring to adapt to the competitive landscape [3] Stock Performance - Honda's stock (HMC) saw a 1% increase on Wednesday morning following the announcement of layoffs and strategic changes [3]