Nissan to cut 11,000 jobs and close 7 plants due to weak sales

Japanese automaker Nissan has announced that it will cut another 11,000 jobs at its production facilities globally and close seven plants, reorganizing its business due to weak sales. This is reported by Yahoo Finance, reports UNN.

Details

Falling sales in China and significant discounts in the US, the company's two largest markets, have significantly impacted the manufacturer's profits, and a proposed merger with Honda and Mitsubishi fell through in February this year.

The planned cuts bring the total number of layoffs announced by the company over the past year to approximately 20,000, or 15% of its workforce.

Nissan does not specify where exactly the job cuts will be made and whether the Sunderland plant will be affected by the board's decision. The company employs nearly 133,500 people worldwide, including approximately 6,000 in Sunderland.

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Two-thirds of the latest job cuts will be in manufacturing, with the remainder in sales, administrative positions, research and contract staff, said company CEO Ivan Espinosa.

The announced layoffs come on top of 9,000 job cuts Nissan announced in November as part of its cost-saving efforts.

In February, talks between Nissan and its larger competitor Honda broke down after the companies failed to agree on a multi-billion dollar merger. The plan was to combine businesses to fight competition from Chinese manufacturers.

The merger would have created a $60 billion (£46 billion) automotive giant, the fourth largest in the world in terms of car sales after Toyota, Volkswagen and Hyundai.

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Following the failure of the talks, then-CEO Makoto Uchida was replaced by Ivan Espinosa, who was the company's chief planning officer and head of its motorsports division.

Nissan also reported annual losses of 670 billion yen ($4.5 billion), and US President Donald Trump's tariff hikes created additional pressure on the struggling company.

Espinosa said the previous fiscal year was "challenging", with rising costs and an "uncertain environment", adding that its results were a "wake-up call".

Recall

This year, Nissan plans to further reduce more than 10,000 employees, with a total of about 20,000 reductions expected.