Report: Japan’s Nissan to cut 11,000 more jobs globally
The struggling automaker is planning additional job cuts due to a higher-than-expected drop in unit sales, according to a report by NHK. One of the reasons for Nissan’s woes is its collapsing market share in China.
Nissan Motor plans to slash about 11,000 more jobs, bringing the struggling Japanese automaker’s total expected cuts to about 20,000, or 15% of its global group workforce, according to a report by NHK.
In November 2024, the company had said it would reduce its global production capability by 20% and cut 9,000 jobs to turn around its business.
Sources told Japanese media group NHK that the automaker is planning additional job cuts due to a higher-than-expected drop in unit sales. Last month, Nissan said it was anticipating a record USD 4.74 billion-5.08 billion net loss in the financial year that ended in March.
One of the reasons for Nissan’s woes is its collapsing market share in China, where its sales have more than halved in four years.
The company employs around 6,000 people at its factory in Sunderland, England. More than 11 million cars have been built at the Sunderland plant since it opened in 1986, according to a report by Daily Mail. However, it wasn’t immediately clear how many UK jobs would be impacted by Nissan’s latest job cuts.
In a sign of more trouble for the automaker last week, Nissan said it had cancelled plans to build a new USD 1 billion electric car battery production factory in Japan.
Nissan currently operates five vehicle assembly plants in Japan. Former CEO Makoto Uchida had previously said he was committed to keeping domestic factories in operation.
Nissan wanted to merge operations with its Japanese rival Honda but talks broke down in February after Honda’s proposal to make Nissan its subsidiary reportedly did not go well with Nissan’s board.