Mitsubishi Electric lays off more than 1,000 workers at Thailand air-con factory

20, Apr. 2020

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BANGKOK, NNA - Mitsubishi Electric Consumer Products (Thailand) Co. (MCP) has temporarily laid off 1,119 contract workers, about a sixth of its workforce, at a domestic air-conditioner factory due to a decline in orders sparked by the global COVID-19 outbreak.

The company handed out layoff notices Thursday and Friday last week, with effect from Friday, and compensated the contractors, Mitsubishi Electric Asia (Thailand) Co. spokesman Koichi Katsura told NNA on Sunday. The company did not disclose an amount of compensation.

The factory, located in the Amata City Chonburi Industrial Estate in Chonburi Province, east of Bangkok, had more than 6,000 workers. It has capacity to produce about five million household and commercial air-cons annually, the spokesman said.

Mitsubishi Electric Consumer Products (Thailand) needed to cut workers as the disease outbreak’s economic impacts are “likely to persist for awhile.” The company will consider rehiring them if production recovers, he said.

Mitsubishi Electric Kang Yong Watana Co., another Thai-based subsidiary of Mitsubishi Electric Corp., said in February the local sales and after-service unit held a 33 to 35 percent share of Thailand’s air-conditioner market.