Nissan's Global Workforce Cut: Over 20,000 Jobs at Risk Amid Business Overhaul

Struggling Japanese automaker Nissan Motor Co is set to slash approximately 20,000 jobs globally, a significant increase from the 9,000 reductions announced last fall. This drastic measure is part of Nissan's effort to revitalize its business amidst ongoing challenges in key markets like the U.S. and China.

Impact on Workforce and Production

The latest job cuts will affect about 15% of Nissan's total workforce. The company is also considering closing one of its domestic factories in Japan to optimize production capacity, a move that could face strong opposition from labor unions.

Financial Struggles and Restructuring

Nissan anticipates a net loss of 700 billion to 750 billion yen for fiscal 2024, marking its biggest-ever annual net loss. Under the leadership of CEO Ivan Espinosa, Nissan is reviewing its investment strategy, including the recent abandonment of plans to build an electric vehicle battery plant in Fukuoka Prefecture.

Failed Merger Talks with Honda

Earlier this year, Nissan explored a merger with Honda Motor Co, but negotiations collapsed after Honda proposed making Nissan its subsidiary, a move that did not sit well with Nissan's board.