Japanese Automaker Nissan Announces Over 10K Job Cuts

Nissan, the third-biggest car maker in Japan, has announced over 10,000 job cuts, bringing the total of job cuts, including previous ones, to a whopping 20,000 or 15% of the company’s total workforce. All of this is an attempt to make the organisation leaner and more efficient, following poor performance in two of Nissan’s biggest international markets, the US and China. 

The carmaker is set to release its financials on Tuesday for the previous year that ended in March. Nissan announced last month that it will likely book a loss of over 700 billion yen that year due to impairment charges. Some sources claim that Nissan is performing poorly in international markets because it failed to ride the wave of hybrids, which have swarmed the international market and have emerged as the top choice for people in many countries. 

However, the company is looking to make a comeback in China, the world’s biggest car market, with plans to launch almost 10 new vehicles in the coming years. 

All of this can be attributed to the company’s new CEO, Ivan Espinoza, who replaced Makoto Uchida last month. He is restructuring the organisation and operations and has previously said that the company is considering going the extra mile to ensure efficiency and profitability. 

In addition to job cuts, Nissan has also vowed to shut down three of its manufacturing facilities. One has been shortlisted in Thailand, while the company is yet to finalise the remaining two. 

Today, many companies are carrying out job cuts to ensure efficiency and profitability. Recently, Google announced job cuts in its global business unit, which is responsible for fostering good relations with international advertisers.