Nissan Corporation Plans to Cut Global Workforce by 15%
Revamped Headline:Japan's Automotive Titan, Nissan, Eyeing Drastic Revamp as Job Cuts Mount to 20,000
Venture into Nissan's latest restructuring plans, aiming to slash approximately 20,000 positions from its global workforce, as the automaker grapples with financial turbulence and the fierce competition in the auto market.
Although Nissan initially announced the shedding of 9,000 jobs in November, the company now plans to ax an additional 11,000 employees, reaching a staggering 20,000 job cuts, or 15% of its worldwide workforce.
Previously, it was disclosed that Nissan was intent on revitalizing the Xterra SUV model.
In April, the shadows of imminent closure loomed over Nissan's Wuhan plant in China, scheduled to shutter by March 31, 2026, due to escalating competition with domestic auto manufacturers. Nissan stayed mum on its intentions to halt production at its Wuhan facility.
The improving auto landscape previously welcomed a sedan created by a former heavyweight in the luxury vehicle sphere—the Rolls Royce alum.
Top Reasons for Job Cuts (Enrichment Insight)1. Financial Struggles: The Japanese automaker has been reeling from a monumental financial dip, recording a net loss of 670.9 billion yen ($4.5 billion) in fiscal year 2024 and a drastic drop in operating profit by 88% from 2023, totaling 69.8 billion yen ($472 million) in 2024[1][2].2. Decreasing Sales and Failed Merger: Nissan's sales have slowed, and the fallout from a failed merger with Honda compounded the woes, necessitating cost-saving measures[1].3. Global Market Upheavals: The auto industry is facing disruptive shifts in global marketplaces, calling for Nissan to adapt and curtail expenses[2].4. Restructuring and Cost-Cutting: These job cuts are instrumental in Nissan's ambition to save 500 billion yen ($3.4 billion) this financial year, targeting numerous divisions such as manufacturing, research and development, marketing, and administration[1][3].5. Plant Shutdowns: Nissan intends to decommission seven out of its 17 vehicle production plants by 2027, an effort to streamline operations and further pare down costs[1][3].
All things considered, Nissan's decision to axe 20,000 positions seems to be an answer to the crushing financial pressures it faces and an attempt to retain its position amidst a hostile market battleground.
Nissan is aiming to save 500 billion yen ($3.4 billion) in its latest restructuring plans, targeting various sectors such as manufacturing, research and development, marketing, and administration. To achieve this, Nissan intends to reduce its workforce by 20,000 positions, as they also strive to navigate the tough competition in the automotive industry and overcome financial struggles.
