No, Honda, Toyota aren’t planning tens of thousands of layoffs

A social media post making the rounds is claiming that two automakers with factories in Alabama are planning tens of thousands of layoffs nationwide.

However, neither company has made any such announcement.

Users on several social platforms are sharing the following claim:

“Honda and Toyota are preparing to execute plans to shut down assembly lines in the US because they are not willing to pay a 25% premium on materials. Tens of thousands of workers in plants in Ohio, Kentucky, Alabama, Tennessee, Mississippi and Georgia will be sent home without pay. The effect on those workers and the communities they shop in will make the price of eggs seem completely insignificant.”

The post appears to reference an expected backlash in connection with proposed tariffs from the Trump White House.

Earlier this month, President Donald Trump ordered 25% tariffs on Canada and Mexico at the start of February, before suspending them for one month. The president also ordered, beginning on March 12, that all steel and aluminum imports will be taxed at a minimum of 25%.

Another similar post claims the announcement was made Monday, but no official notification came from either automaker.

Honda, in a statement, said the claim is false.

Chris Abbruzzese, a spokesman for Honda, said the statement “did not come from Honda and is inaccurate from our standpoint.”

In fact, later this month, Honda’s factory in Lincoln is unveiling the new 2026 Honda Passport SUV.

Attempts to reach Toyota were not immediately successful, but only last week, the automaker told its U.S. dealers to expect improved inventory as the year progresses, according to Automotive News.

Some industry insiders do expect layoffs this year, but for more than one reason. Earlier this month, a survey of nearly half (45%) of U.S. managers said their company will likely lay off workers in 2025, reported Automotive Dive.

Though tariffs were cited as one possible reason for layoffs, others included overstaffing, industry-specific challenges, automation and artificial intelligence.

However, some analysts say the proposed tariffs could lead to layoffs, depending on if they go forward and how long they last.

The Detroit Free-Press earlier this month reported Toyota manufactures the Rav4 SUV in Canada, as does Honda the CR-V and Civic, which would affect their prices. Analysts say the tariffs could add another $2,000 to the price of affected automobiles, at a time when vehicle prices are already high.

Sam Abuelsamid, vice president of Market Research at Telemetry Insights, said should tariffs erode automobile sales by about 2 million vehicles, he anticipates 15% to 20% of all U.S. autoworkers to be laid off.