Nissan, a Japanese carmaker, has announced plans to cut 11,000 jobs globally and close seven factories in response to declining sales. The company has been hit hard by poor sales in China and heavy discounting in the US, its two largest markets. Additionally, a proposed merger with Honda and Mitsubishi fell through in February, adding to Nissan’s financial struggles.
This latest round of layoffs brings the total number of job cuts by Nissan to around 20,000 in the past year, representing 15% of its workforce. The specific locations of the job cuts have not been disclosed, raising concerns about the impact on employees, including the 6,000 workers in Sunderland. The ongoing restructuring efforts are part of a broader cost-saving initiative to reduce global production by a fifth.
In the wake of the failed merger talks, Nissan experienced significant leadership changes, with Chief Executive Makoto Uchida being replaced by Ivan Espinosa. The proposed merger between Nissan and Honda aimed to create a $60 billion motor industry giant, positioning them as a formidable competitor against other industry leaders. However, disagreements over the terms of the deal ultimately led to its collapse, leaving both companies to navigate their respective challenges independently.
Despite the setbacks, Nissan reported an annual loss of 670 billion yen ($4.5 billion) exacerbated by Donald Trump’s tariffs. The company’s new leadership acknowledged the tough financial year, citing rising costs and an uncertain business environment as contributing factors. Moving forward, Nissan remains focused on addressing these challenges and implementing strategies to drive sustainable growth in the competitive automotive market
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