Nissan to Cut 20,000 Jobs Globally Amid Major Restructuring

Nissan Motor (OTC:NSANY) is reportedly planning to cut over 10,000 additional jobs worldwide, bringing total layoffs to around 20,000 — nearly 15% of its global workforce — as the company faces ongoing struggles in key markets. According to Japan’s NHK, these cuts come as Nissan aims to streamline operations after disappointing sales in the U.S. and China, its two largest markets. The company has not officially commented on the report.

The Japanese automaker is expected to announce its fiscal year results on Tuesday, having already warned of a record net loss of ¥700 billion to ¥750 billion ($4.74 billion–$5.08 billion) due to impairment charges. Nissan has struggled to adapt to the rising popularity of hybrid vehicles in the U.S. and has lost its early competitive edge in electric vehicles.

In China, the world’s largest automotive market, Nissan plans to launch 10 new models in an effort to revive its slumping sales. New CEO Ivan Espinosa, who succeeded Makoto Uchida last month, is spearheading a comprehensive restructuring plan to restore profitability.

Last November, Nissan announced 9,000 job cuts and a 20% reduction in global production capacity. The automaker will close its Thailand plant by June and shutter two additional factories yet to be named. On Friday, it also scrapped plans for a $1.1 billion EV battery plant in Kyushu, which was set to benefit from government subsidies.

As of March 2024, Nissan employed over 133,000 people. The company’s continued weak performance has led to four downward revisions of its profit forecast for the fiscal year, underlining the urgency of its transformation efforts. Investors and analysts will be closely watching Tuesday’s earnings announcement for further restructuring details.