On November 8, Nissan Motor Co. announced plans to lay off thousands of employees as part of a strategy to reduce global production in response to declining sales in both China and the United States. The Japanese automotive giant revealed that it will eliminate approximately 9,000 jobs worldwide, a move aimed at achieving significant cost savings that will also involve cutting its global production by 20%.
While Nissan has not provided specific details regarding the locations of the job cuts, it operates a major manufacturing facility in Sunderland, North East England, where over 6,000 employees are currently based. This decision comes alongside a drastic revision of the company’s operating profit forecasts for 2024, which have been lowered by 70%. This marks the second downward adjustment the company has made to its financial outlook this year.
Nissan’s CEO, Makoto Uchida, emphasized that these restructuring efforts do not indicate a reduction in the company's overall footprint. He stated, "Nissan will restructure its business to become leaner and more resilient," highlighting a commitment to improving organizational efficiency.
In a move to demonstrate solidarity during these challenging times, Uchida announced that his monthly salary would be halved, and other senior executives will also experience pay cuts. Following this news, Nissan's stock price fell more than 6% in Tokyo trading on Friday morning.
The company cited intensified competition in the Chinese market as a contributing factor to its struggles, with local manufacturers like BYD driving down prices and making it increasingly difficult for foreign automakers to compete effectively.
Despite these challenges, Nissan has previously signaled its commitment to innovation and growth. In November of the previous year, the company, in collaboration with its partners, unveiled a £2 billion ($2.6 billion) plan to produce three new electric vehicle models at its Sunderland plant. This initiative includes the development of electric versions of the Qashqai and Juke, alongside the next generation of the electric Leaf, which is already being manufactured at the facility.
Zainab Y.
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