Nissan recently announced plans to cut 9,000 jobs worldwide and cut global production by 20%.
Specific details remain unclear. The cuts are part of a broader plan—spanning the next few years—to downsize and stabilize.
The layoffs tie into Nissan’s long-term goal, targeting profitability by fiscal year 2026.
In a notice about the job cuts to investors, Nissan said: “Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the markets.”
Adding: “To achieve healthy growth in the future, the company will adopt a structure that can secure sustainable profitability and cash generation even at a level of 3.5 million units in annual sales by fiscal year 2026.”
Reasons Behind Nissan’s Decision
The cuts come after disappointing financial results. Net income plunged by 94% in the first half of the year and it cut its operating profit forecast by 70%—down to ¥150 billion.
The message to investors is clear: costs are too high, and the market is unforgiving. The company has no choice to adapt and implement difficult cost-cutting measures.
Impact on Stakeholders
This news stirs concern among employees and appeaars to have shaken company morale. To offset backlash, top executives, including CEO Makoto Uchida, have cut their own salaries—Uchida by 50%.
Historical Context
In 2019, Nissan undertook similar measures. This latest announcement recalls those past challenges, showing Nissan’s ongoing struggle to stay competitive. While its competitors have shown resilience, Nissan’s recent attempts have seen limited success.
Reactions and Commentary
The Japanese government has yet to respond. Industry regulators have stayed silent for now too. But discussions on labor and industrial policy are likely, especially with Nissan’s role in Japan’s economy.