Mitsubishi said that it will not renew contracts with the 1,100 temporary workers when they expire in March 2009.
The auto maker is seeking to adjust production in a bid to keep inventory lean as demand slows.
The company had previously announced that it is cutting production by 80,000 units. The latest downsizing move is expected to reduce production by another 30,000 units in the current fiscal year to March 2009, according to the news source.
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