Grim News for Auto Enthusiasts: Nissan's Second Round of 10,000 Global Job Cuts
Nissan to institute global workforce reduction of approximately 10,000 employees
Hop on the digital highway, folks! Japanese automotive titan Nissan is gearing up to axe another 10,000 jobs worldwide. That's on top of the 9,000 jobs it announced cutbacks for, amounting to around 15% of its global labor force, as reported by NHK and Nikkei business media[1]. Sounds rough, eh? You bet it is.
Brace yourself, as Nissan plans to share the disappointing fiscal year results, ending March, on Tuesday. These spells more bleak numbers: the company has projected a record-shattering loss of 700 to 750 billion yen (4.3 to 4.6 billion euros)[2]. Ouch!
So, what's pummeling Nissan like a wrecking ball? Essentially, dear reader, it's a series of mammoth challenges our auto pal is grappling with. Here's a lowdown on the significant speeds its battered by:
- Financial Punch: Fueled by a colossal net loss of over $4.5 billion (670.9 billion yen) in FY 2024, Nissan's swimming upstream, desperately seeking financial relief[1].
- Variable Cost Overdrive: Surging variable costs are an albatross around Nissan's neck, further tightening its financial noose in these turbulent economic times[1].
- Sluggish Sales: Nissan's once-crowded showrooms are now eerily silent, with global sales dipping and a notable decline in China, one of its main markets[1].
- Re-Nissan Recovery Plan: Nissan's "Re-Nissan" recovery plan isn't a swift ride in the wilderness. It involves chopping off 20,000 jobs by 2027, and downsizing its plant count from 17 to 10 by the same timeframe. The goal? To save a cool $3.4 billion (500 billion yen) in comparison to FY 2024[1].
- Collapsed Merger: The proposed merger between Nissan and Honda bit the dust, leaving Nissan in a strategic lurch, necessitating drastic fiscal measures[1].
So there you have it! Nissan's (regrettable and sizable) job cuts and staggering financial losses are rooted in a crippling blend of financial pressures, plummeting sales, and restructuring efforts. #AutomotiveBummer2025
Sources: ntv.de, AFP, 1, 2
In the face of these challenges, the Japanese car group, Nissan, finds itself grappling with significant hurdles in both the industry and finance sectors, impacting its transportation and automotive operations. The bitter pill of job cuts extends beyond the initially announced 9,000, with a planned reduction of an additional 10,000 jobs worldwide, reflecting a dire need for restructuring and cost savings.
