Nissan is now planning to cut around 20,000 jobs, double the initial number it had announced last November. This decision comes in response to the company’s ongoing financial struggles linked to weak global sales and substantial losses. In November, Nissan had said it would reduce its workforce by 9,000 employees due to a 94% plunge in first-half profits, largely driven by disappointing sales in key markets like the US and China. However, the company now expects to cut 15% of its total workforce, which equates to nearly 20,000 jobs.
Nissan also warned of a record net loss ranging from 700 to 750 billion yen ($4.74 billion to $5.08 billion) for the past financial year, mainly due to impairment charges. This situation reflects Nissan’s struggles, including its reliance on discounts to push sales and outdated car models that have failed to resonate with consumers. To address this, the company has had to scale back production and bring in new leadership to try to turn things around.
Additionally, there are reports that Nissan may offer early retirement to several hundred employees in administrative roles in Japan, marking its first such move in 18 years. However, Nissan has yet to officially comment on the reports.
The company is set to announce its official full-year financial results on May 13.
