Japanese car manufacturer Nissan Motor Corp has announced a global workforce reduction of approximately 9,000 employees, representing about 6% of its 133,000-strong workforce. This measure is part of a broader strategy that includes reducing the company’s global production capacity by 20%.
The decision to cut jobs and scale down production comes in response to ongoing challenges in global manufacturing and declining sales, particularly in the crucial markets of China and the United States. According to Nissan, global production has decreased by around 5%, prompting the company to streamline its operations to adapt to current market conditions.
Nissan CEO Makoto Uchida emphasized that these changes do not signify a downscaling of the company’s overall ambitions. “These changes do not at all mean that the company is downsizing itself. Nissan will also begin restructuring to grow its business and make it more flexible,” Uchida stated. This restructuring initiative aims to position Nissan for future growth while enhancing its operational resilience.
Uchida did not specify which regions will be impacted by the layoffs, leaving some uncertainty about the geographic focus of the workforce reduction. Additionally, details regarding specific production sites or operational areas affected by the cuts were not disclosed.
In its latest quarterly report ending in September, Nissan reported a significant financial loss of 9.3 billion Yen (approximately USD 60 million), a stark contrast to the 190.7 billion Yen profit it had recorded during the same quarter the previous year. This downturn underscores the economic pressures that have influenced Nissan’s recent restructuring efforts.
