Nissan Announces Major Job Cuts and Production Reductions Amid Ongoing Financial Struggles
Nissan reveals plans to eliminate 20,000 jobs and close plants as part of a recovery strategy to combat significant financial losses.
Nissan increases job cuts to 20K by 2027
Fox Business
Overview
Nissan has announced an additional 11,000 job cuts, bringing total reductions to 20,000 as it struggles with significant financial losses. The company reported a staggering 671 billion yen net loss for FY 2024 due to declining sales in the U.S. and China, as well as failed merger attempts. New CEO Ivan Espinosa emphasizes a shift towards profitability rather than volume, planning to reduce its production facilities from 17 to 10 plants by 2027 and aiming for 500 billion yen in cost savings. The situation reflects deeper issues stemming from previous management strategies under Carlos Ghosn.
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Associated Press·2M·FAQ
Nissan's financial struggles are primarily due to declining sales in key markets like the U.S. and China, as well as rising costs and failed merger attempts. The company is also impacted by U.S. tariffs and challenges in developing a strong lineup of electric vehicles.
Nissan aims to save around 500 billion yen by reducing its workforce by 20,000 and cutting the number of plants from 17 to 10 by 2027. The plan also includes shifting focus towards electric vehicles and optimizing production capacity.
U.S. tariffs pose significant challenges for Nissan, potentially costing the company up to $3 billion. This uncertainty has led Nissan to consider shifting U.S. models to other markets and avoiding an operating profit forecast for 2025.
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