Nissan plans to further cut more than 10,000 employees, with a total of about 20,000 expected to be cut, NHK reports, writes UNN.
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"Nissan Motor Co., Ltd., whose performance continues to deteriorate, has decided to further cut more than 10,000 people both at home and abroad to change the company for the better. Combined with previous plans, this will result in a reduction of approximately 20,000 employees, or approximately 15% of the total group workforce," the publication writes.
As indicated, Nissan Motor Co., Ltd. is expected to have a final deficit of up to 750 billion yen ($5 billion) for the entire fiscal year.
In November last year, the company announced plans to reduce its global production capacity by 20% and lay off 9,000 employees to change its business. "However, according to people familiar with the situation, due to a drop in sales volumes greater than expected, the company decided to cut another 11,000 jobs both in Japan and abroad," the publication clarifies.
This, as indicated, will lead to a reduction in the group's workforce by approximately 15%.
On May 9, Nissan also announced the abandonment of plans to build a battery plant for electric vehicles (EVs) in Japan.
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The company has already announced its intention to close three plants, including one in Thailand, and will review the excessive production structure, reducing the workforce.
Nissan is expected to announce this policy at its earnings conference on May 13, and as the business environment becomes even tougher due to the customs measures introduced by the Trump administration in the United States, the main focus, as noted, is on whether the new management team, including President Ivan Espinoza, who took office in April, will be able to carry out a fundamental restructuring of the company.