Nissan Motor is set to cut more than 10,000 jobs globally, as reported by Japan’s public broadcaster NHK. This move will bring the total number of layoffs, including those previously announced, to approximately 20,000, which is about 15% of Nissan’s workforce.
Struggles in Key Markets
The automaker is facing challenges in China and the United States, its largest markets, where sales have been weak. Nissan has missed the growing popularity of hybrid models in the U.S. and failed to leverage its early lead in electric vehicles. In China, the world's biggest auto market, Nissan plans to launch around 10 new vehicles in the coming years to combat declining sales.
Financial Troubles
Nissan is expected to announce a record net loss of 700 billion to 750 billion yen ($4.74-$5.08 billion) for the business year ended in March, due to impairment charges. The company has revised its profit outlook downward four times during the last financial year.
Restructuring Efforts
Under the leadership of CEO Ivan Espinosa, who took over last month, Nissan is undergoing a significant restructuring. The company had previously announced plans to cut 9,000 jobs and reduce global capacity by 20%. Additionally, Nissan will close a plant in Thailand by June and shut down two more unidentified plants. The automaker has also abandoned plans to build a $1.1 billion EV battery factory in Japan, for which it was to receive government subsidies.
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