Auto parts maker F-TECH to cut China workforce by half due to Honda sales slump

Automotive chassis component manufacturer F-TECH announced on August 3rd that it will cut its workforce at its main production bases in China by approximately 500 employees. This reduction represents nearly half of the company's total staff in the country.

The decision stems from a significant decline in sales for F-TECH's primary customer, Honda, in the Chinese market. Honda's retail sales in China decreased by 44.5% in June and 34.7% cumulatively from January to June year-on-year. This drop in demand has led to reduced operating rates at F-TECH's factories.

This marks the second major workforce reduction for F-TECH in China within approximately two years, following a cut of 300 employees in October 2022. The company is now offering early retirement incentives. F-TECH is seeking 350 employees from its Wuhan plant and 150 from its Zhongshan plant to participate in a voluntary early retirement program.

The recruitment for these voluntary departures will take place from August 3rd to August 31st. Employees who accept the offer are expected to leave their positions on August 31st, and F-TECH will provide them with a one-time severance payment. The company's two production bases had around 1,000 employees as of August 3rd.