Nissan Motor plans to cut over 11,000 additional jobs worldwide, local radio NHK reported on Monday. Along with previously announced layoffs, around 20,000 positions will be cut, which represent about 15% of the company’s workforce.
In November, the Japanese automaker had announced plans to reduce its workforce by 9,000 positions following a sharp decline in sales in the U.S. and China.
Late last month, Nissan updated its fiscal 2024 forecast, expecting a record annual loss of 700 billion yen to 750 billion yen ($4.7 billion to 5 billion). This update followed a series of downward revisions, with the most recent cut — its third — occurring in February.
At that time, the company also announced leadership changes, reducing top executive roles by 20% starting in April, and unveiled plans to cut costs by approximately 400 billion yen ($2.7 billion) by fiscal 2026.
The brand now projects full-year vehicle sales of 3.35 million units. It has slashed its operating profit forecast by 30% to 85 billion yen ($5.7 million).
Chief executive officer (CEO) Ivan Espinosa stated that Nissan is “bracing for a substantial net loss this year, primarily due to a major asset impairment and ongoing restructuring efforts as we work to stabilize the business.”
“Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period,” Espinosa added.
Meanwhile, merger discussions between Nissan and Honda stalled in February, reportedly due to Honda’s proposal to make the automaker a subsidiary. Despite the setback, Nissan chief operating officer (COO) Ashwani Gupta recently expressed openness to future partnerships, noting that conversations with Honda are still underway.
Last Friday, Nissan announced it would halt plans for a $1.1 billion EV factory in Japan, which was expected to create about 500 jobs. The company is “taking immediate turnaround actions and exploring all options to recover its performance,” as stated.
Later on the same day, local media outlet Nikkei reported that the brand was also planning to offer early retirement to several hundred domestic staff. The carmaker declined to comment on both reports.
Nissan is set to announce its full-year results on Tuesday, May 13.
