**Nissan to Lay Off Additional 11,000 Employees Amidst Global Restructuring**
Nissan is reportedly planning to eliminate approximately 11,000 more jobs worldwide, which would increase its total layoffs to around 20,000, according to Japan’s public broadcaster NHK. This decision follows the company’s earlier announcement to cut 9,000 positions due to declining business performance. With this latest development, Nissan is expected to experience a 15% reduction in its global workforce, as reported by Reuters.
In November, Nissan revealed its intention to reduce its workforce by 9,000 jobs after facing disappointing sales in the United States and China during the first half of the financial year. The company experienced a staggering 94% drop in net income during that period, as highlighted by Bloomberg. However, Nissan has yet to officially comment on the recent job cuts, and updates will be provided if the company issues a statement.
As of March last year, Nissan employed over 133,000 staff members and had previously announced plans to cut 9,000 jobs while also reducing global production capacity by 20%. The company is set to disclose its financial results for the year ending in March on Tuesday. Since November, Nissan has adjusted its growth outlook downward, grappling with intense competition in both the U.S. and Chinese markets.
Nissan warned shareholders last month that it anticipates a record net loss of between 700 billion yen and 750 billion yen (approximately $4.74 billion to $5.08 billion) for the fiscal year, primarily due to impairment charges. Additionally, the company plans to close a plant in Thailand by June and has announced the closure of two other unidentified plants. Recently, Nissan also abandoned plans to construct a $1.1 billion factory for electric vehicle batteries in Kyushu, Japan, which was expected to receive government subsidies.
The company’s struggles stem from significant debt and a costly restructuring initiative. Nissan, which had considered a merger with Honda earlier this year, is finding it increasingly challenging to compete against domestic electric vehicle manufacturers in China. Furthermore, rising tariffs in the U.S. have negatively impacted its profitability. Credit rating agencies have downgraded Nissan to junk status, with Moody’s citing its “weak profitability” and “aging model portfolio.”
In conclusion, Nissan’s ongoing challenges highlight the difficulties faced by traditional automakers in adapting to a rapidly changing automotive landscape. As the company navigates these turbulent times, the implications for its workforce and overall market position remain to be seen.
**FAQ**
**What is the reason behind Nissan’s job cuts?**
Nissan is cutting jobs due to weak sales performance in key markets like the U.S. and China, leading to significant financial losses and a need for restructuring.
