Nissan to slash 20,000 jobs, shutter factories globally
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 announced plans 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 forms part of the cost reduction plan the company announced earlier this week. Nissan plans to reduce the number of factories from 17 to 10 worldwide.
In Japan, the closure may affect the Oppama and Shonan plants, leaving the company with three factories in the country. Abroad, the end of production is being considered in South Africa, India, and Argentina, as well as a reduction in the number of plants in Mexico. So far, 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 is due to poor financial performance.
The main reasons for Nissan's deteriorating financial results are weak sales in key markets, such as the United States and China, and high restructuring costs.
The report emphasised that the company's operating profit decreased by 87.7%, reaching 69.8 billion yen (approximately £246 million), whilst sales revenue dropped by 0.4% to 12.63 trillion yen (around £44.9 billion).
In response to the difficult financial situation, Nissan announced a comprehensive restructuring plan. In addition to 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 US tariffs on imported cars and growing competition, especially from Chinese brands.
