Nissan has announced it will cut 11,000 more jobs worldwide. This is part of a larger plan to deal with falling sales and weak demand. The company hopes these cuts will help it become more stable. Nissan has been struggling in key markets like the United States and China.
This move brings the total job losses to 20,000 over the past year. That number is about 15% of the company’s global workforce. The job cuts are expected to continue as Nissan tries to shrink its size and focus on core strengths.
One in Seven Workers Will Lose Their Jobs
Nissan is Japan’s third-largest carmaker. But it has been facing hard times. Sales have dropped sharply, and the company has too many factories. To fix this, Nissan plans to operate fewer plants and cut thousands of jobs.
With the latest cuts, one out of every seven Nissan workers will lose their job. This is a big change for a company that once aimed to grow fast and take on bigger rivals like Toyota and Volkswagen.
At the moment, Nissan has about 133,500 employees around the world. These new cuts will affect workers across many countries. However, Nissan has not said where the cuts will happen yet.
Seven Plants Will Shut Down by 2027
As part of the restructuring, Nissan also plans to close seven of its 17 factories. This means only 10 plants will be left by 2027. The company wants to reduce how many cars it builds, since there is less demand now.
One of Nissan’s key sites is the Sunderland plant in the UK. It employs around 6,000 workers. Nissan has not confirmed if this plant will be affected by the closures. Still, the overall plan is to cut costs and reduce extra production.
Past Layoffs and Missed Merger Add to Pressure
This is not the first time Nissan has cut jobs. In November, the company announced 9,000 job cuts. That move was also aimed at reducing costs and slowing down production. At the time, Nissan said it would shrink its output by 20%.
Adding to the company’s troubles, a big merger plan fell apart earlier this year. Nissan was in talks with another large carmaker. The plan was to form a new company worth $60 billion. It would have become the fourth-largest car company in the world, just behind Toyota, Volkswagen, and Hyundai.
But the deal was never finished. The companies could not agree on the terms. The failed merger was a big blow to Nissan, which had hoped it would help solve some of its problems.
Leadership Shake-Up Follows Merger Collapse
After the failed merger, Nissan made big changes in its leadership. Makoto Uchida, the company’s former CEO, stepped down. He was replaced by Ivan Espinosa, who used to be in charge of planning and motorsports.
This leadership change shows that Nissan is looking for a new direction. The company has been under pressure to change how it does business. With falling sales and increasing competition, Nissan knows it must act fast.
Espinosa now faces the tough job of turning things around. He must deal with the job cuts, plant closures, and try to rebuild trust among workers and investors.
Car Market Trends Behind Nissan’s Struggles
Nissan’s problems are not just about bad decisions. The global car market has changed a lot in recent years. Customers are buying fewer cars. Many prefer electric vehicles, and some delay car purchases because of high prices or economic worries.
In China, one of Nissan’s key markets, local carmakers are growing fast. They offer cheaper cars, many of them electric. This has made it hard for foreign companies like Nissan to keep up.
In the U.S., Nissan has faced tough competition and a weak product line. Some of its models have become less popular. The company has been slow to adapt to new trends like electric vehicles and hybrid cars.
What’s Next for Nissan?
Nissan’s current plan is to focus on fewer markets and fewer models. The company wants to improve the quality of its cars rather than just selling more. It also plans to invest more in electric vehicles and green technology.
Still, it won’t be easy. Job cuts and plant closures can hurt morale. Nissan must also rebuild its brand and fix relationships with workers and partners.
Only time will tell if this bold restructuring will save Nissan. But one thing is clear: the company can no longer rely on old strategies. Big changes are needed to survive in today’s auto industry.