Automobile: Nissan cuts 15% of the global workforce
New Delhi: Facing huge losses this year, Japanese multinational automaker Nissan is reducing 15 percent of its total workforce of nearly 20,000 employees, the media reported on Tuesday.
The company has faced a vehicle sales drop in China.
Nissan Motor Corp. stated that they will reduce the number of auto plants from 17 to 10 under what it called its recovery plan to carry out decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.
The company said that tariffs imposed by US President Donald Trump on auto imports have also affected it severely and also its results.
Nissan aims to reduce its cost by 250 billion yen (USD 1.7 billion) during the next fiscal year (2025) as compared to 2024. It suffered a loss of 670.9 billion yen (USD 4.5 billion) through March, down from the 426.6 billion yen profit recorded the previous fiscal year.
Restructuring costs also ate into its bottom line. Chief Financial Officer Jeremie Papin told reporters the automaker faces serious challenges in achieving a turnaround but stressed it has enough cash to do so.
(Subham Singh)
