Nissan’s Difficult Road Continues with Additional Job Cuts, Say Reports
Nissan’s challenging period is far from over, as reports from local Japanese media suggest the automaker is planning to cut an additional 10,000 jobs. This move, if confirmed, would significantly deepen the earlier workforce reductions announced by the company.
Nissan has not yet commented on the latest reports.
Previously, Nissan had committed to reducing its global workforce by 9,000 employees. The addition of 10,000 more positions would bring the total number of job cuts to nearly 20,000, representing a substantial 15% of its entire workforce. In March, company executives acknowledged to InsideEVs that further plant closures and other austerity measures were on the horizon, though specific details were scarce. These decisions come amid mounting pressures, including tariff-related challenges compounding existing financial difficulties for the Japanese automaker.
Deepening Financial Woes and Strategic Shifts
Nissan has been grappling with declining sales figures, significantly below its past peaks, and strained profit margins for several years. The company incurred losses last year and anticipates further financial setbacks this year. It faces an uphill battle to remain competitive in the rapidly evolving electric vehicle (EV) and software domains, while also needing to boost sales of its current internal combustion engine vehicles. Although less directly impacted by tariffs than some rivals, Nissan must now navigate higher costs and a contracting global auto market.
Even before the recent broad tariff announcements, Nissan was actively seeking strategic partnerships to help steer through these turbulent times. Incoming CEO Ivan Espinosa has adopted a “no taboo” approach to collaborations, expressing openness to any alliance that offers a strategic advantage. This philosophy extends to maintaining dialogue with former potential partners. For instance, Chief Performance Officer Guillaume Cartier confirmed that discussions with Honda have continued, despite the failure of previous merger talks. The goal remains to explore shared development programs to achieve cost savings for both companies.
Potential collaborations could extend to large SUV development for the Americas, as indicated by Ponz Pandikuthira, Chief Planning Officer for North America, though he stressed that no concrete plans are finalized. Nissan has also reportedly engaged in discussions with Foxconn, the electronics manufacturing giant. Given Foxconn’s experience in the automotive supply chain and its interest in EV development, this could present a new avenue for Nissan.
However, the immediate future for Nissan remains demanding. The company must find ways to increase sales and profitability without escalating its operational costs, all while strategizing for an uncertain and capital-intensive future. While Nissan’s leadership appears clear-eyed about these challenges, the latest reports on job cuts suggest that the path forward will likely involve difficult decisions impacting its workforce.
Via Automotive News.
Contact the author: Mack.Hogan@insideevs.com.