Nissan Slashes Jobs, Cut Global Production Capacity

Nissan has disclosed a massive restructuring plan that will eliminate 9,000 jobs worldwide in an effort to address large financial losses and lower production costs. According to Reuters, the Japanese automaker will also cut its production capacity by 20%.
This action comes after the company's profit forecast for the current fiscal year was drastically cut, falling by 70% to 150 billion yen.


Nearly 7% of Nissan's 133,000-person global workforce will be affected by the layoffs, which coincide with declining profits. The Financial Times claims that a 3.8% decline in worldwide sales and increasing competition, especially from Chinese electric vehicle (EV) manufacturers, caused operating profit to drop by 85% in the most recent quarter.

These adjustments are meant to streamline the business, according to Nissan CEO Makoto Uchida, who also described the actions as crucial to Nissan's long-term competitiveness.

Additionally, Uchida declared that he would willingly cut his pay by 50%, a move he explained as a component of Nissan's renewed dedication to recovery and resilience.

Along with the layoffs, Nissan intends to reduce its ownership of Mitsubishi Motors from 34% to 24% in order to generate money for its turnaround initiatives. With plans to launch new models co-developed with Honda, this shift is in line with a larger strategy to concentrate on in-demand EV and hybrid vehicles.

According to The Financial Times, Nissan has also pledged to improve its strategy in the EV market, especially to compete in important foreign markets.