Nissan Announces Massive Layoffs and Production Cuts
In a bold move to combat declining sales in key markets, Nissan has declared it will be laying off thousands of workers and reducing global production by a fifth.
The Japanese automotive giant is set to cut 9,000 jobs worldwide as part of a cost-saving initiative, with specific details on the location of the job cuts yet to be disclosed.
Nissan’s manufacturing plant in Sunderland, North East England, which employs over 6,000 people, may be affected by these layoffs.
The company has also revised its operating profit forecasts for 2024, slashing them by a staggering 70% for the second time this year.
“These turnaround measures do not imply that the company is shrinking,” declared Nissan’s CEO, Makoto Uchida, emphasizing the need for a leaner and more resilient business model.
As part of the restructuring efforts, Uchida’s monthly salary will be halved, and other senior executives will also undergo pay cuts.
Nissan’s shares took a hit, dropping over 6% in Tokyo trading on Friday morning as increasing competition in China poses challenges for foreign car manufacturers.
China’s dominance in electric vehicle production has also impacted Nissan’s performance, with the company lagging behind in the electrified vehicle market.
Meanwhile, struggles in the US market due to inflation and high interest rates have further strained Nissan’s sales figures, prompting price cuts to stimulate demand.
Despite these challenges, Nissan and its partners have unveiled a £2bn ($2.6bn) plan to introduce three electric car models at its Sunderland factory, including the electric Qashqai and Juke models.
With the next generation of the electric Leaf also set to be produced at the plant, Nissan aims to revamp its lineup and stay competitive in the evolving automotive landscape. — BBC
