Several newspapers and websites reported that Nikon (Thailand) is laying off at least 2,600 workers in Thailand. Accoridng to Thainewsland.com, Nikon (Thailand) labour union leader Tongchai Sithidej said company, based in Ayutthaya’s Rojana Industrial Estate, on 20 November 2008 announced the termination of employment for 2,600 sub-contract workers without any advance notice. The workers claimed they were given a payout of only two months’ salary, even though labour law demands employers give three months’ pay to contract workers. Ms.Sithidej also said the company should have told staff of the lay-offs in advance, to give them time to look for work.

Nikon blamed the drop in orders from the United States, Japan and Canada, and said it had prompted the cuts. It is not the only company to suffer the effects of the global financial crisis in Ayutthya. Earlier, nine electronic parts manufacturers in the province closed and laid off more than 1,000 staff. Ayutthaya governor Preecha Kamolbut expects another 40,000 workers will lose their jobs next month as more factories face a drop in orders from abroad. Ayutthaya has more than 300,000 workers in 1,700 factories.

Nikon (Thailand) had about 15,000 employees, and 5,000 of those are sub-contract workers before the large scale layoff last month.