LOS ANGELES -- Mitsubishi Motors North America Inc. has closed one of its five regional offices and cut 25 jobs at its headquarters in Cypress, Calif.
The reductions come as Mitsubishi's sales continue to plunge and dealer profitability is on life support.
The employees cut from the headquarters, about 5 percent of the staff, are in sales, marketing and finance.
The North Central region, which had been based in Chicago, has been shut down. That leaves regions in Philadelphia; Orlando, Fla.; Los Angeles; and Dallas.
The company says employees in the Chicago region will be reassigned to other regions. The cutbacks were necessary "for long-term future success," the company said in a statement.
Through the first three months of this year, Mitsubishi's sales fell 25.6 percent to 25,695 units. According to the company, only about half of its 570 dealers say their Mitsubishi operations are profitable.
The latest cuts leave about 525 employees in the Cypress headquarters, down from about 900 in late 2003.
The shutdown of the North Central region had been rumored since new CEO Hiroshi Harunari came on board in January. Sources say Harunari targeted the North Central region because it is one of the worst-performing regions for Mitsubishi.
You may e-mail Kathy Jackson at [email protected]