Nissan Motor Co. has announced a major restructuring plan due to falling profits and slowing global sales. The plan includes shutting down seven manufacturing plants and cutting 11,000 more jobs worldwide. It brings the total number of job cuts to around 20,000, following the 9,000 job reductions announced earlier.
Nissan plans to reduce its manufacturing facilities from 17 to 10 and simplify its supply chain by cutting 70% of the parts it uses, aiming to boost efficiency. Nissan CEO Ivan Espinosa, who recently took charge, called the past year a “wake-up call” for the company.
He emphasised that high costs and low earnings have forced Nissan to make significant changes. As part of Nissan’s path toward financial recovery, the company aims to cut costs by approximately 500 billion yen.
For the financial year ending in March, Nissan’s operating profit dropped by 88%, falling to 69.8 billion yen (around $472 million). The company expects a major operating loss of 200 billion yen in the first quarter, CFO Jeremie Papin said.
Nissan is facing multiple problems. Sales have dropped sharply in the U.S. and China, while talks of merging with Honda have stalled, further complicating its strategic direction. Additionally, the company is under pressure from U.S. tariffs and tough competition from Chinese EV makers.
While this restructuring is one of Nissan’s biggest changes in recent years, the path ahead is challenging and expected to be long.
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