Nissan Motor Corporation Announces Major Layoffs
Automotive leviathan in Japan set to discharge multiple thousands of workforce members
It's time to say goodbye to the jobs of around 20,000 Nissan employees worldwide. This staggering reduction in workforce will impact both domestic and international staff members, according to the news agency NHK's sources.
This significant downsizing is part of Nissan's business restructuring plan, aimed at tackling rising expenses. Approximately 15% of the company's global workforce will be out of a job as a result.
The brunt of the layoffs will be felt in Japan and abroad. Specifically, three plants will be shuttered, including a factory in Thailand. This move comes in response to the troubling decline in global car sales for Nissan. The company anticipates a whopping loss of 750 billion yen (roughly $5.1 billion) for the fiscal year ending in March 2026.
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Unveiled details on Nissan's job cuts, affected regions, and the reasons behind the restructuring:
Projected Job Reduction
- Affected Employees: Roughly 15% of Nissan's global workforce is set to be laid off, representing approximately 20,000 employees.
- Completion Timeline: By March 2028, the job cuts will be finalized and will include the previously announced reduction of 9,000 positions.
Impacted Locations
- Factory Shutdowns: Nissan intends to reduce the number of its auto plants from 17 to 10, though specific Japanese factory locations remain undisclosed.
Motives Behind Restructuring
- Slumping Sales: Nissan faces a challenging market presence in key regions like China and various countries.
- High Restructuring Costs: The company is grappling with substantial restructuring expenses.
- Business Model Transformation: The goal is to build a flexible and agile business model capable of adapting to swift market shifts. CEO Ivan Espinosa underscores the urgency for "strong and bold actions" to strengthen performance[1].
Strategic Alliances
Nissan seeks to foster partnerships, specifically with Renault SA in Europe and Dongfeng Nissan in China, to streamline market and product strategies[1].
The automotive industry is one of the sectors that will be significantly impacted by Nissan's business restructuring, with the layoff of approximately 20,000 employees, which corresponds to 15% of the company's global workforce. This move is aimed at addressing declining sales, particularly in key regions like China, and managing high restructuring costs, as the company transitions to a more flexible and agile business model [1].
Finance and transportation sectors may also feel the ripple effects of these layoffs, as Nissan intends to close three plants, including a factory in Thailand, and reduce the number of its auto plants from 17 to 10, though specific Japanese factory locations remain undisclosed [1]. These future changes are expected to help Nissan respond more swiftly to market shifts and address its challenging market presence [1].
