The company’s global workforce will be reduced by 15 percent in a last-ditch effort to stay afloat
- Nissan will cut an additional 10,000 jobs, on top of the 9,000 already announced earlier this year.
- The Japanese automaker is facing serious challenges after posting deeply negative financial results.
- More details are expected during the company’s full-year earnings call scheduled for May 13.
As the auto industry faces ongoing disruptions and shifting global markets, Nissan appears to be deepening its retreat rather than mounting a comeback. Nissan has reportedly announced over 10,000 additional job cuts, raising the total to around 20,000. That figure now represents roughly 15 percent of the company’s global workforce.
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The news, first reported by Japanese media outlet NHK, comes just one day ahead of Nissan’s full-year earnings call, scheduled for May 13. Only weeks earlier, the company projected a dismal set of financial results, including a record-setting $5 billion net loss for the fiscal year that ended in March.
Cuts Continue Amid Failing Recovery Plan
Earlier announcements had already confirmed Nissan’s intention to lay off 9,000 workers, shut down manufacturing facilities, and cut global production capacity by 20 percent. But those measures seem to have fallen short. Weak 2024 sales were compounded by impairment charges, restructuring expenses, and tariffs that have put additional pressure on the company’s U.S. operations.
In March, former President and CEO Makoto Uchida stepped down following stalled merger negotiations with Honda and Nissan’s search for a new strategic partner. Ivan Espinosa has since taken the helm and now faces the unenviable task of stabilizing the company. Nissan’s near-term strategy includes several upcoming model launches aimed at reversing declining sales figures.
Carlos Ghosn Weighs In
Carlos Ghosn, the disgraced former Renault-Nissan chairman who fled Japan in 2019 and remains the subject of an international arrest warrant, has weighed in on the company’s latest troubles. Speaking to French outlet BFM Business, Ghosn described Nissan as being in “dire straits.”
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Predictably, the former executive didn’t miss the chance to say “I told you so,” claiming, “I predicted Nissan’s decline and the alliance’s demise”. While the latter hasn’t happened yet, Ghosn seems convinced that a split between Renault and Nissan is only a matter of time.
Blame for Management, Not Markets
Ghosn places the blame squarely on his successors, pointing to “Nissan’s management” and their “slow decisions” as the root of the problem. He claims the company was “forced to go and beg for help from one of its main competitors in Japan,” taking another jab at the failed merger talks with Honda. He reiterated his opposition to the idea, comparing it to “an alliance between Renault and Peugeot in France” and adding, “it doesn’t make sense.”
The Lebanese-French-Brazilian businessman also spoke about Renault, saying it is back to being “a small European manufacturer with no global reach”, criticizing its absence from China and the United States. Ghosn believes that Renault must innovate in order to save itself, adding that “the depth of the relationship with Geely will be important for Renault in the future.”
