Source: Warald on 1亩3分地

According to a Reuters report, Nissan Motor plans to cut more than 10,000 jobs globally.

Including previously announced layoffs, the total number of job cuts will reach around 20,000, accounting for 15% of its global workforce.

Nissan had warned last month that due to impairment expenses, it might incur a net loss of up to 700 billion to 750 billion Japanese yen (approximately $4.74 billion to $5.08 billion) this fiscal year, setting a record high.

The company failed to seize the growing demand for hybrid models in the U.S. market and also failed to fully capitalize on its early advantages in the electric vehicle sector.

Image source: Internet, copyright belongs to the original author

Image source: Internet, copyright belongs to the original author

Ivan Espinosa, the newly appointed CEO who replaced Makoto Uchida last month, is working on restructuring the company and stated that he is considering taking more measures.

The company also announced that it will close a factory in Thailand in June and plans to shut down two other factories whose locations have not been disclosed yet.

In addition, Nissan has decided to cancel the plan to build an 11-billion-dollar electric vehicle battery plant in Kyushu, Japan.

This project was originally planned to receive government subsidies but has been halted due to the current continuous poor performance.

Last fiscal year, Nissan had lowered its profit forecast four times, showing the severity of its operating conditions.

Image source: Internet, copyright belongs to the original author

Nissan announced in November 2024 that it would reduce global production capacity by 20% and cut 9,000 jobs globally.

Because the mid-term financial report in September 2024 showed that the operating profit dropped by 90.2% compared to the same period in 2023, and the net profit decreased by 93.5%.

At that time, Nissan also decided to sell part of its stake in Mitsubishi Motors Corporation.

Image source: Internet, copyright belongs to the original author

Earlier this year, Nissan and another major Japanese carmaker Honda announced the cancellation of their merger plan. Moody's, an international credit rating agency, downgraded Nissan's credit rating to junk status due to its weak profitability.

Nissan will release its full financial report for the 2024 fiscal year on May 13, which may disclose more details about the restructuring and future strategy.

Currently, Nissan faces a severe situation. The delayed transformation of Nissan's electric vehicles, coupled with the significant reduction in production capacity and R&D investment, will allow competitors such as BYD, Tesla, and Geely to accelerate the capture of market share.

Especially in the Chinese market, Nissan's sales have almost halved over the past four years, with its market share being quickly eroded by BYD and Chery.

Nissan's layoffs and strategic contraction reflect the high risks faced by companies that fail to transform.

Industry expectations are that there will be more cases of layoffs, mergers, and bankruptcies in the next 2-3 years, marking the entry into the "elimination round" phase of the industry.

Original article: https://www.toutiao.com/article/7503760571347632651/

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