Business Nissan to cut production and slash 9,000 jobs

[thomas]

Nissan Motor is undergoing significant restructuring due to financial difficulties. The company plans to lay off 9,000 employees globally and reduce its production capacity by 20%. This decision comes after a second downward revision to their profit forecast for the fiscal year. President Uchida Makoto expressed deep concern about the company's performance, particularly in North America, where they experienced a significant operating loss. This region had previously been a major contributor to Nissan's overall profitability.

Sales of electric vehicles have slowed in North America, with hybrid cars growing. But Nissan focused on EVs over hybrids. Its miscalculations stem from a management culture that has stuck with the company since the Carlos Ghosn era, when the company underwent a top-down cost-cutting overhaul. Ghosn became Nissan's CEO in 2001 and later took the title of chairman. He was fired from the company in 2018 over allegations of financial misconduct. But many senior executives from that era remain. Critics say some in Nissan's workforce remain reluctant to propose improvements directly to their superiors. Some observers also say decision-making has become slower since the chief operating officer post became vacant in 2023.

Paywall alert:

Nissan's job, production cuts show newfound sense of urgency

Japanese automaker has been slow to escape legacy of Ghosn era

asia.nikkei.com

Nissan cuts 9,000 jobs globally and slashes profit forecast

Hit by worsening U.S., China markets, automaker sells 10% Mitsubishi Motor stake

asia.nikkei.com

• Costs to be cut by 400 billion yen in the current FY
• Cuts operating profit outlook by 70%
• Global production capacity to be cut by a fifth
• China sales slump lacks hybrids for the US market
• To sell up to 10% of Mitsubishi Motors for up to 68.6 bln yen

Source: Nissan to axe 9,000 jobs, cut production on weak China, US sales