Nissan affirms intention to dismiss approximately 11,000 more workers
Rewritten Article:
It looks like things aren't looking rosy for Nissan, as they've got some serious financial hurdles ahead. Ivan Espinosa, Nissan's new CEO, isn't mincing his words, admitting that their variable costs are on the rise and their current income isn't enough to cover their fixed expenses.
Sources have spilled the beans to NHK that Nissan is planning to say goodbye to approximately 11,000 employees as part of their restructuring endeavors. This adds to the 9,000 guys they announced in November 2024 would be shown the door due to losses. At that time, they also announced a 20% reduction in production capacity. Now, it seems sales have tanked even more than expected, forcing Nissan to wave a fond farewell to another 11,000 employees, both in Japan and beyond its borders.
Among other things, Nissan is aiming to simplify parts by 70%, according to Reuters, though they haven't yet disclosed which factories are on the chopping block. However, it's been reported by Nikkei that several plants in Japan will be affected.
Nissan's operating profit for the fiscal year that ended March 31 dropped a whopping 88% compared to the previous year, down to 69.8 billion yen ($471 million), as per Reuters. Espinosa, who took over as CEO in April 2025, replacing the departed Makoto Uchida, is targeting total cost savings of around 500 billion yen ($3.37 billion).
The automaker has been taking a beating, mostly in the U.S. and China markets. Add to that the 25% U.S. import tariffs and their financial situation starts to look rather grim. In a bid to revive their fortunes, Nissan even started discussing a merger with Honda, but those talks fizzled out after Honda expressed concerns about the scale and urgency of Nissan's restructuring plans.
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- Nissan's new CEO, Ivan Espinosa, acknowledged an increasing turbulence in their business finances, with variable costs escalating and income failing to cover fixed expenses.
- In an effort to revamp the company, Nissan is contemplating major cost-cutting measures in both its business and finance sectors, potentially reducing workforce by around 11,000 employees and simplifying parts by 70%.
