Nissan to shut factories, slash 20,000 jobs in global overhaul
Nissan plans to close two factories in Japan and several abroad, including in Mexico, reports CNBC. This is part of a cost-cutting strategy that the company has announced. The Japanese automotive giant also stated its intention to cut 20,000 jobs worldwide.
Nissan, the third-largest car manufacturer in Japan, is considering closing two assembly plants in the country and several factories abroad, including in Mexico.
According to CNBC, this decision is part of the cost reduction plan the company announced earlier this week. Nissan plans to reduce the number of factories worldwide from 17 to 10.
In Japan, the closure could affect the Oppama and Shonan plants, leaving the company with three factories in the country. Internationally, production may end in South Africa, India, and Argentina, with a reduction in the number of plants in Mexico. At this point, the company has not officially confirmed this information.
Nissan to lay off thousands of people
The Japanese automotive company Nissan announced on Tuesday that it intends to cut 20,000 jobs worldwide. This decision stems from poor financial performance.
The main reasons for Nissan's deteriorating financial results are weak sales in key markets like the United States and China, along with high restructuring costs.
The report highlighted that the company's operating profit decreased by 87.7%, reaching 69.8 billion yen (approximately 634 million CAD), and sales revenue dropped by 0.4% to 12.63 trillion yen (approximately 110.3 billion CAD).
In response to the challenging financial situation, Nissan announced a comprehensive restructuring plan. Besides layoffs, the company plans to reduce the number of its factories from 17 to 10 by the fiscal year 2027/2028.
Nissan's situation is further complicated by U.S. tariffs on imported cars and growing competition, especially from Chinese brands.
