Nissan to cut 11,000 more jobs and shut seven factories
Nissan plans to cut an additional 11,000 jobs and shut down seven factories globally due to weak sales in major markets like the US and China, bringing the total layoffs to 20,000, or 15% of its workforce. The company aims to reduce its number of plants from 17 to 10 by 2027, as part of a broader strategy to decrease global production by a fifth. This move follows a failed merger with Honda that could have created a $60 billion automotive giant, leading to a leadership change with Ivan Espinosa replacing Makoto Uchida as CEO. Despite employing about 133,500 people worldwide, including 6,000 in Sunderland, the job cuts remain unspecified in terms of location. The layoffs reflect broader struggles within the car industry to adapt to changing market conditions and competitive pressures.
Context:
Nissan plans to cut an additional 11,000 jobs and shut down seven factories globally due to weak sales in major markets like the US and China, bringing the total layoffs to 20,000, or 15% of its workforce. The company aims to reduce its number of plants from 17 to 10 by 2027, as part of a broader strategy to decrease global production by a fifth. This move follows a failed merger with Honda that could have created a $60 billion automotive giant, leading to a leadership change with Ivan Espinosa replacing Makoto Uchida as CEO. Despite employing about 133,500 people worldwide, including 6,000 in Sunderland, the job cuts remain unspecified in terms of location. The layoffs reflect broader struggles within the car industry to adapt to changing market conditions and competitive pressures.
Dive Deeper:
Nissan's decision to cut 11,000 more jobs globally is a response to declining sales in key markets, particularly in the US and China, highlighting ongoing struggles within the automotive industry.
The total number of layoffs announced by Nissan over the past year now reaches approximately 20,000, amounting to 15% of its global workforce, as part of a significant restructuring effort.
Plans to reduce the number of manufacturing plants from 17 to 10 by 2027 align with the company's strategy to cut global production by 20%, aiming to streamline operations and improve financial performance.
A failed merger negotiation with Honda, which could have resulted in the creation of a $60 billion automotive powerhouse, led to a leadership change with Ivan Espinosa taking over as CEO from Makoto Uchida.
Nissan employs around 133,500 people worldwide, with a significant portion of its workforce based in Sunderland, England, but the specific locations of the upcoming job cuts have not been disclosed.
The automotive sector faces mounting challenges including market shifts, competition, and financial pressures, prompting companies like Nissan to make significant operational and workforce adjustments.
Leadership changes and strategic decisions within Nissan reflect attempts to navigate a competitive and rapidly evolving industry landscape, aiming to secure future stability and growth.