Recently, media reports claimed that Dongfeng Honda is facing strategic adjustments and conducting large-scale layoffs, which are expected to affect up to 2,000 employees.

It is worth mentioning that Dongfeng Honda will offer N+2+1 compensation to laid-off employees. It is understood that "N" represents the number of years an employee has been employed, with one month's salary corresponding to each year as compensation, with no upper limit on the number of years. The "+2" portion is an additional reward of two months' salary for each employee, calculated based on their pre-tax monthly average salary over the past year (August 2023 to July 2024). The "+1" represents any potential additional benefits.

Precisely because of the high compensation standards, Dongfeng Honda's compensation policy is attracting employees to queue up and "compete" for layoff positions, unlike the impact of layoffs at other automakers. Meanwhile, photos of special farewell ceremonies for laid-off employees have circulated online.

Dongfeng Honda has not made an official response to the above news.

However, it is worth noting that due to declining sales in the Chinese market and production capacity constraints, Dongfeng Honda's layoffs have sparked widespread discussion in the industry as early as August.

According to public opinion at the time, it was reported that the company planned to lay off approximately 1,700 employees, accounting for about 14% of its total workforce.

Internal employees revealed at the time that Dongfeng Honda's layoff plan started in May and was expected to continue until August. Additionally, the company would offer a compensation package of "N+2+1.8" to departing employees. Among them, "N+2" is the standard compensation, while "1.8" may represent additional bonuses or allowances.

If the above information is true, Dongfeng Honda's actions are more dignified compared to the layoff compensation measures of some domestic automakers.

In comparison, as the domestic automotive industry embarks on a wave of "cost reduction and efficiency enhancement" across the entire industry chain, unreasonable compensation measures for layoffs by automakers (including unreasonable terms and reduced compensation amounts) have led to numerous cases where employers and employees have fallen out and even ended up in court.

Since the beginning of this year, automakers including Lixiang Auto, Guangqi Honda, and FAW-Volkswagen have all initiated layoffs, affecting approximately 5,600, thousands, and 565 employees, respectively.

Furthermore, the wave of layoffs at foreign-funded enterprises such as Volkswagen, Tesla, Stellantis, Bosch, ZF Friedrichshafen, Continental, and Valeo has also spread from abroad to China. Among them, ZF Friedrichshafen laid off 12,000 employees on a large scale, while Continental and Bosch laid off 7,000 and 1,200 employees, respectively. Valeo also laid off 1,150 employees.

In reality, businesses often face pressures that necessitate strategic adjustments, including scaling back expenses and adjusting headcount based on development strategies. However, some companies take advantage of such situations to exploit employees and deprive them of their legitimate compensation rights, which should be subject to legitimate oversight by regulatory authorities. The way a company handles layoffs can offer insights into its overall business approach.

(Images in this article are sourced from Dongfeng Honda's Weibo account)