Mazda Hit by Trump Tariffs... Implements Voluntary Retirement for 500 Employees, First Time in 24 Years

Mazda to Offer Voluntary Retirement to 500 Employees Amid Intensifying Tariff War
Largest Workforce Reduction Since 2001, When 2,200 Employees Were Cut
Nihon Keizai: "Mazda Expected to Suffer 3 Trillion Won in Losses"

As the Donald Trump administration in the United States imposed high tariffs on imported cars and the exchange rate shifted to a stronger yen, Japanese automakers are facing the double burden of "tariffs plus exchange rates." Mazda, a Japanese car manufacturer with a high dependence on the U.S. market, has begun to take action, including implementing a voluntary retirement program for the first time since 2001.

According to reports from the Yomiuri Shimbun and Asahi Shimbun on the 23rd (local time), Mazda will implement a voluntary retirement program for the first time since 2001. Mazda announced that it will recruit a total of 500 regular employees aged 50 to 61, excluding factory technical workers, for voluntary retirement in four rounds, including June and December this year, by the end of next year.

This voluntary retirement program is being conducted under the name "Second Career Support System." As part of the program, Mazda will offer increased severance pay and provide reemployment support. However, the specific amount of severance pay and the total cost of the voluntary retirement program were not disclosed. Regarding this voluntary retirement, Mazda explained, "As the automotive industry shifts its production structure toward electric vehicles, the business environment has become uncertain. This measure is intended to support employees who wish to pursue opportunities outside the company."

The Yomiuri Shimbun diagnosed that "Mazda's recruitment of retirees is greatly influenced by the additional tariffs imposed on imported cars by the Trump administration in the United States." The Asahi Shimbun reported, "This is the first voluntary retirement at Mazda since 2001, when the company reduced its workforce by 2,200 people in response to deteriorating performance. On the 3rd of this month, Mazda also expressed its intention to focus on cost reduction in response to the U.S. tariff measures."

Mazda Motor Corporation. EPA Yonhap News

Mazda is considered one of the companies directly hit by the recent U.S.-China trade war. This is because Mazda is significantly exposed to the 25% high tariff imposed by the Trump administration on imported cars. Last year, Mazda sold a total of 424,379 vehicles in the United States, of which 75% were produced overseas, such as in Japan or Mexico, and then imported into the U.S. On the 18th, the Nihon Keizai Shimbun estimated that Mazda could suffer losses of up to 300 billion yen (about 3 trillion won) due to the Trump tariffs.

Previously, President Trump announced on the 26th of last month that, based on Section 232 of the Trade Expansion Act, a 25% tariff would be imposed on foreign-made cars and auto parts imported into the United States. Tariffs on automobiles began to be imposed on the 3rd of this month, and by the 3rd of next month, the scope of tariffs is expected to expand to include key auto parts such as engines, transmissions, and powertrains.