Car Crisis: Nissan Also Announces Major Layoffs

It’s not just VW and Stellantis that are suffering from the auto market crisis. Japanese major player Nissan also announced a deep staff rationalization plan that involves cutting 9000 jobs globally and reducing production capacity by 20%.

This was announced by the Japanese automaker itself, which lowered its full-year forecasts by 70%, with operating profit for the fiscal year estimated at ¥150 billion (€906 million), down from previous estimates of ¥500 billion.

Fewer and fewer cars are being sold, and the brand is down 24% in the US market. The company is suffering from competition in the power sector from Tesla and Chinese brands, most notably BYD, which continues its unstoppable growth.

Nissan announces that it intends to take “urgent” action to return to competitiveness and “create a more responsive and resilient company capable of adapting quickly to market changes.”

Nissan CEO Makoto Uchida then concluded that “Nissan will cut global production capacity by 20% and reduce its global workforce by 9000 people.

The Company is implementing a number of measures to reduce selling, general and administrative expenses, lower the cost of goods sold, rationalize its business portfolio, and prioritize capital expenditures and investments in research and development.”