Nissan to Cut Thousands of Jobs Amid Sales Decline in China and U.S
Nissan announced plans to lay off around 9,000 employees globally as it scales back production due to declining sales in key markets, including China and the United States. This restructuring move will result in a 20% reduction in global output, aimed at reducing costs and repositioning the company in an increasingly competitive market.
The Japanese automaker, which employs over 6,000 workers at its Sunderland plant in Northeast England, has not specified which locations will be impacted by the job cuts. The BBC sought further clarification, but Nissan has yet to provide details on where the layoffs will take place.
Nissan has also slashed its operating profit forecast for 2024 by 70%, marking the second time this year it has downgraded its financial outlook. Chief Executive Makoto Uchida emphasized that the company’s transformation strategy is focused on making Nissan “leaner and more resilient,” rather than signalling a contraction.
Senior executives, including Uchida himself, will also face salary reductions as part of the cost-saving measures, with Uchida’s monthly pay cut by 50%.
Nissan’s shares fell by over 6% in Tokyo following the announcement, reflecting investor concerns amid rising competition in China, particularly from domestic brands like BYD. The company, like many Japanese automakers, has faced challenges adapting to the rapid shift toward electric vehicles in China, which is now the world’s largest EV market.
In the U.S., inflation and high interest rates have reduced consumer demand for new vehicles, pressuring automakers to cut prices and resulting in lower profits.
Despite these challenges, Nissan is pressing forward with plans to enhance its electric vehicle offerings. Last November, the company, alongside its partners, announced a £2 billion ($2.6 billion) investment to manufacture three new electric models at the Sunderland plant. The facility will produce electric versions of the Qashqai and Juke, as well as the next generation of the electric Leaf, which is already being assembled there.
