Topline
Nissan Motor plans to lay off more than 10,000 employees globally, doubling the total cuts at the Japanese automaker to about 20,000 workers amid weakened sales in the U.S. and China, Japan’s national broadcaster reported Monday.
The Japanese automaker announced broad layoffs last year and recently warned of weakened sales in … More
Key Facts
Nissan will cut 11,000 jobs as the automaker’s sales have dropped more than expected in the U.S. and China, NHK reported, according to a translation by Reuters.
The latest layoffs at Nissan bring the total cuts at the automaker to roughly 20,000, accounting for about 15% of Nissan’s workforce, after the company announced in November that 9,000 jobs would be eliminated.
Nissan warned shareholders last month the company expects to experience a net loss of up to $5 billion for the fiscal year that ended in March, as the automaker cites “changes in the competitive environment and deterioration in sales performance.”
Nissan did not immediately respond to a request for comment from Forbes.
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Tangent
While sales in the U.S. and China have dropped more than expected, Nissan announced plans to drop construction on a $1.1 billion electric vehicle plant in Kyushu, Japan, as well as closures for a plant in Thailand and two other unidentified facilities.
What To Watch For
Nissan will report its full-year results for fiscal year 2024 on May 13. The automaker revised its financial outlook in April, as CEO Ivan Espinosa said Nissan anticipates a “significant net loss” for the year because of “major asset impairment and restructuring costs as we continue to stabilize the company.”
Key Background
Nissan has reported financial woes in recent years in the lead-up to an expected $60 billion merger with Honda Motor in 2024. The Japanese automakers planned to operate under a joint holding company that would include Mitsubishi, completing what would likely become the largest merger in the automotive industry since a $52 billion deal between Fiat Chrysler and PSA Groupe in 2021. That deal fell through in February, however, after they said “various options” were discussed to structure the new company. Nissan, Honda and Mitsubishi entered a strategic partnership in August 2024 that intended to have the three companies cooperate on their EV business while agreeing to develop batteries, axles and other technologies.
Further Reading
Honda And Nissan In Merger Talks Amid Efforts To Boost EV Offerings, Report Says (Forbes)
