Nissan Layoffs: Japanese Automaker Laying Off 9,000 Employees To Reduce Cost, Cut Production Capacity by 20% After Poor Financial Performance
Yokohama, November 7: Nissan, a Japanese automobile giant, will lay off 9,000 employees from its global workforce to reduce costs amid the poor performance in financial results. Along with Nissan layoffs, the company would also reduce its production capacity by 20%. The Japan-based automobile company sold nearly 1,6 million vehicles, much lower than the previous year, specifically in the United States, said a report.
According to a report by Business Insider, Nissan layoffs will affect 9,000 positions, automakers will lower production capacity by 20%, and executives will take pay cuts. The report mentioned that Nissan sales volume YoY decreased drastically to 1.6 million cars. The primary reason cited by the report was the higher cost of the vehicles. It said that the automaker underperformed, particularly in the US market. Volkswagen Layoffs: German Automaker VW To Slash Tens of Thousands of Jobs, Impose 10% Salary Cut As 3 Plants To Be Shut In Germany.
Due to poor sales and higher selling and production costs, Nissan generated much lower revenue. The company posted a profit of 32 million yen, which could be translated to USD 207-208 million. For the same period last year, Nissan reported a much higher profit of USD 1.4 billion, which marks a poorer performance in 2024.
The report mentioned that along with layoffs, Nissan would reduce its production capacity by 20% as CEO Makoto Uchida forfeited 50% of his monthly compensation from November 2024 among other executives who would take a voluntary pay cut. The report highlighted that Nissan had started a voluntary severance program over the summer. Schaeffler Layoffs: German Auto Parts Manufacturer To Lay Off 4,700 Employees in Europe Amid Drop in Operating Profit.
According to a report by AutoNews in August 2024, Nissan Motor Co. was said to cut the US salaried workforce through a voluntary severance program as “the Japanese automaker’s fortunes falter in its second-largest market.” It was earlier hinted that the company would reduce its workforce; however, the numbers could not be ascertained. As of March 31, 2024, Nissan had around 1,33,580 employees.
