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May 13, 2025
Nissan Layoffs: Nissan made the announcement that cost-cutting measures are planned on Tuesday, while laying off 11,000 additional employees, and cutting production.
After what has been a tough year, the car company is working to recover and rebuild.
Nissan is now planning more job cuts, which could raise the total job cuts to approximately 20,000.
Previously, it had cut 9,000 jobs. Now, it is cutting an additional 11,000 jobs. It is a tough decision as Nissan is trying to rebuild from a difficult time.
Nissan's finances took a hit. Most of their previous profit was wiped out. During the time frame of April to March, Nissan earned only 69.8 billion yen.
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That's about $472 million dollars. That is an 88% decline from the year before. This shows just how badly the business was impacted.
Nissan is really facing some challenges right now. Their sales have taken a hit in both the U.S. and China, and the plans for a merger with Honda fell through.
On top of that, they’ve had to bring in a new CEO to steer the ship. But they’re not the only ones feeling the pinch.
U.S. tariffs are adding more pressure on automakers, and at the same time, rapidly growing Chinese EV brands are emerging as serious competitors, especially in Southeast Asia and other important markets.
Ivan Espinosa is now the new CEO of Nissan. He has a big challenge ahead. The company’s image isn’t what it used to be.
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Once a powerful brand, Nissan has lost much of its shine. Now, it’s up to him to bring back that lost value. The road to recovery won’t be easy.
During the press conference, he referred to the results as a clear “wake-up call.” However, it doesn’t look like a quick recovery is on the horizon.
In fact, the company is preparing for even more losses. CFO Jeremie Papin revealed that Nissan is anticipating a staggering 200 billion yen operating loss in the first quarter.
The challenges they face are far from over.
According to experts, Nissan is now paying the price for decisions made earlier.
Under former Chairman Carlos Ghosn, the company focused on achieving a sales volume at all costs to the exclusion of profitability.
To maintain sales momentum, the company deeply discounted many of its vehicles.
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Consequently, Nissan has an outdated vehicle lineup, and is now trying to update all its models at this point in time.
Espinosa stressed that Nissan needs to improve quickly and more effectively.
The company should shift its focus away from relying on high sales volumes and instead concentrate on achieving profitability.
This shift is crucial for Nissan's successful progress moving forward.
Nissan has decided to target 500 billion yen in the financial 2024 year. To achieve this Nissan will cut their manufacturing plants.
They are going from 17 to 10. Nissan is also trying to reduce the parts complexity and is aiming for a 70% reduction in complexity.
These changes are fundamental to cost reductions.
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