Nissan Motor is reportedly planning to cut more than 10,000 jobs globally, bringing the total number of layoffs to approximately 20,000, or 15% of its workforce. This follows previously announced plans to reduce its workforce by 9,000 employees.
The job cuts are part of a broader restructuring effort aimed at making Nissan's business leaner and more resilient. The company has faced challenges due to weak sales in major markets such as China and the United States, missed opportunities in the hybrid and electric vehicle markets, and a resulting record net loss.
CEO Ivan Espinosa is overseeing the restructuring and has previously indicated that further measures were under consideration. The company is scheduled to announce its results for the fiscal year ending in March, which is expected to show a significant net loss.
Nissan Motor will cut more than 10,000 jobs globally, bringing the number of layoffs, including those previously announced, to about 20,000 or 15 per cent of its work force, Japan’s public broadcaster NHK reported on Monday.
Japan’s third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States.
Nissan declined to comment on the report.
It is set to announce on Tuesday results for the business year that ended in March. It warned last month it would likely book a record 700 billion yen to 750 billion yen ($4.74-billion-$5.08-billion) net loss in that year due to impairment charges.
The car maker missed out on the growing popularity of hybrid models in the United States and failed to capitalize on an early lead in electric vehicles there.
It has also suffered in China, the world’s biggest auto market, where it plans to launch some 10 new vehicles in the coming years to try to halt a slide in sales.
CEO Ivan Espinosa, who took over from Makoto Uchida as chief executive last month, is restructuring Nissan’s operations and has previously said the company was considering extra measures.
Nissan, which had more than 133,000 staff as of March last year, announced plans last November to cut 9,000 jobs and reduce global capacity by 20 per cent.
It has also said it would close a plant in Thailand by June and shut two more plants that it has not identified.
On Friday, it said it had decided to give up a plan to build a $1.1-billion factory, for which it was set to receive government subsidies, for EV batteries on Japan’s southwestern island of Kyushu.
Its weak performance forced it to cut its profit outlook four times for the financial year that just ended.
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