Honda is offering voluntary redundancy or a pay cut at its UK factory in Swindon.
The BBC has reported that Dave Hodgetts, director at Honda in Swindon, sent a letter to staff stating the company would make a loss of £320 million this year.
Approximately 1,000 of the 5,000 Swindon workers have already taken up the offer of the Associate Release Programme (ARP), which Honda insists is not a redundancy scheme. More staff members have been invited to take up the ARP.
For workers that stay at the plant, the pay cut is likely to last for a year for all employees.
Honda’s staff in Japan have already taken a 10% pay cut and all senior managers have taken a 15% cut with bonuses suspended.