Japanese automotive giant Nissan will make another major cut in its workforce due to global financial difficulties. The company is revising its 9,000 layoff plan, which it announced last November, to 20,000. This number corresponds to approximately 15% of Nissan’s total number of employees.
Nissan to lay off exactly 20,000 people
The decision was announced just one day before the annual financial results announcement scheduled for May 13. According to the latest information, Nissan is preparing to announce a record net loss of $5 billion for the 2024 fiscal year. This loss will go down in records as one of the most serious financial losses in recent years.
The company had previously announced plans to close production facilities, reduce global production capacity by 20%, and lay off 9,000 people. However, weak sales performance in 2024, exchange rate losses, and restructuring costs showed that these measures were quite inadequate.
The turmoil experienced at Nissan is not limited to the financial dimension. In March, the company’s former CEO Makoto Uchida left his post after merger talks with Honda failed.
His successor, Ivan Espinosa, took over as the company’s new CEO. Espinosa will soon have to both ensure financial stability and recover from falling sales. What do you think about this? You can easily share your thoughts with us in the comments section below.
