Nissan Announces Thousands of Job Cuts Amidst Declining Sales

Nissan announced plans to dismiss thousands of employees globally and decrease its worldwide manufacturing output by one-fifth. This decision comes as the Japanese automotive manufacturer addresses declining sales in the Chinese and American markets. The company confirmed a reduction of 9,000 positions globally as part of a cost-saving initiative. Nissan did not provide an immediate response to an inquiry from BBC News regarding the specific locations of these job reductions. The firm’s manufacturing facility in Sunderland, located in North East England, currently employs over 6,000 individuals. Additionally, Nissan revised its operating profit projections for 2024 downwards by 70%. This marks the second instance within the current year that the company has reduced its financial outlook. Nissan’s chief executive, Makoto Uchida, stated, “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient.” The company disclosed that Mr. Uchida’s monthly remuneration would be halved, with other senior executives also experiencing salary reductions. On Friday morning in Tokyo, Nissan’s stock experienced a decline of over 6%. Increased competition within China has resulted in price decreases, making it challenging for numerous foreign automotive manufacturers to contend with domestic companies such as BYD. China has emerged as the leading global manufacturer of electric vehicles, a development attributed to many Western competitors’ inability to maintain pace. Mark Rainford, a car industry commentator based in China, observed, “Nissan, like many Japanese car makers, has been very slow to the electrified vehicle party in China and this is reflected in their results.” The company is also facing difficulties in the United States, where inflation and elevated interest rates have negatively impacted new vehicle sales. Reduced consumer demand has prompted automotive manufacturers to decrease prices, subsequently affecting their profitability. In November of the previous year, Nissan, in collaboration with its partners, unveiled a £2bn ($2.6bn) initiative to produce three electric vehicle models at its Sunderland plant. The company stated its intention to manufacture electric Qashqai and Juke models at the facility, in addition to the next generation of the electric Leaf, which is currently in production at the same site. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our external linking policy is available.