Japanese automaker to lay off 20,000 workers
According to a report by the international economics desk of Webangah News Agency, citing tasnim News Agency, The Guardian stated on Tuesday that Nissan plans to close 7 factories following a stressful year, resulting in the loss of 20,000 jobs globally.
The report indicates that Nissan will cut 11,000 jobs as part of its production reduction plan—separate from the 9,000 jobs announced in November—totaling a 15% workforce reduction for the company.
The decision will affect both permanent employees and contractors in production, sales, management, and research & advancement sectors.
Nissan has not specified which factories will close but confirmed its Sunderland plant in northeast England—its sole European facility employing around 6,000 workers—is unlikely to be shuttered.
The restructuring will reduce Nissan’s global factories from 17 to 10 by 2027, aiming to save ¥500 billion (approx. $2.6 billion). The automaker also plans to streamline its supply chain by sourcing more parts from fewer suppliers to cut costs.
The new CEO, Makoto Uchida, faces the daunting task of reviving a company whose once-powerful brand value has declined. at a press conference,Uchida emphasized prioritizing profitability over production volume: “Given fiscal year 2024’s challenging performance rising variable costs and uncertain conditions we must urgently accelerate internal improvements achieve profitability less dependent on output.”
He added : * “As new management team we’re taking cautious approach reassessing goals rigorously pursuing every possibility implement reforms ensure robust turnaround . “
Nissan reported net loss ¥671 billion fiscal year ending March attributed slumping sales US China markets early impacts Donald Trump trade war . A proposed $60 merger Honda collapsed Uchida formally assumed CEO role last month .
