Nissan Announces Major Global Layoffs, Over 10,000 Jobs at Risk

Nissan Motor Co., Ltd. is reportedly increasing its global workforce reductions to more than 10,000 positions bringing the total job reductions to just below 20,000 or roughly 15% of its total global workforce. This falls in line with a more extensive restructuring to address severe financial problems according to the NHK Reports.

Previously, Nissan had announced plans to cut 9,000 jobs and reduce global capacity by 20% in an announcement on their restructuring plan. The additional layoffs add weight to Nissan’s efforts to cut costs and improve its future as an automaker.

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Nissan has been dealing with declining performance in certain major markets particularly in the United States where it is experiencing tough competition and does not have hybrid offerings. Meanwhile, in China Nissan is facing a significant sales decline and it is aiming to introduce about 10 new models over the next several years to recover some lost market share.

The Japanese manufacturer has projected a net loss of between 700 billion and 750 billion yen (US$4.74 billion to US$5.08 billion) for the financial year ending in March due to impairment charges. The company is set to announce its full-year results on Tuesday.

In another development, Nissan has elected to cancel its planned $1.1 billion electric vehicle battery plant in Kitakyushu, Japan. The project was anticipated to create 500 jobs by July 2028 and ultimately be delayed after the decision was made on the efficiency of the investment.

These actions demonstrate Nissan’s intention to adjust its business structure to best suit the ever-changing landscape of the car manufacturing business.