Nissan Motor Co. has announced a significant workforce reduction, doubling its planned job cuts to 20,000 employees globally.
The decision, reported by Japan’s national broadcaster NHK, comes as part of a massive restructuring effort aimed at stabilizing operations and addressing financial losses.
The layoffs, which now account for 15% of Nissan’s total workforce, reflect the company’s struggles with declining sales, outdated product lines, and bloated dealership incentives.
Reasons Behind the Job Cuts at Nissan
Nissan initially planned to cut 9,000 jobs in November 2024 following weak sales in the U.S. and China, which led to a 94% drop in first-half net income.
However, worsening financial conditions have forced the automaker to increase the layoffs to 20,000 positions.
Key factors driving the decision include:
- Declining global sales, particularly in key markets like the U.S. and China.
- Outdated product lineup, struggling to compete with newer models from rival automakers.
- Excessive dealership incentives, which have impacted profitability.
- Production capacity reductions, as Nissan attempts to streamline operations.
Financial Impact and Executive Overhaul
Nissan has warned that it expects a record net loss of ¥750 billion ($5.1 billion) for the last fiscal year, marking one of its worst financial performances in history.
The company is set to announce its full-year financial results on May 13.
In addition to job cuts, Nissan is undergoing an executive leadership overhaul, aiming to revamp its management structure and improve strategic decision-making.
Global Workforce Reduction Strategy at Nissan
The 20,000 job cuts will be implemented across multiple regions, affecting both manufacturing and administrative roles.
Reports suggest that Nissan may also offer early retirement packages to several hundred employees in Japan, marking its first voluntary retirement plan in 18 years.
The restructuring is expected to reshape Nissan’s global operations, ensuring long-term sustainability amid intensifying competition in the automotive industry.
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