As Nissan's Recovery Plan Evolves, the Number of Potential Job Cuts Grows
Early last year, Nissan, watching global sales wane and the pressure on its (un)balance sheet increase, hinted at the potential for 10,000 job cuts, per sources. That number then rose to an official 12,500, as North American pressures added to woes in Asia and Latin America. The unexpectedly eventful year of 2020 began with buyouts in the U.S.
Now, a report out of Japan — one that seems to reflect the company’s anticipated new direction — claims the automaker’s workforce will require a 20,000-strong cull, this time with Europe as the focal point.
Kyodo news (via Reuters) claims the updated figure takes into account new pressures arising from the coronavirus pandemic. Mainly, cratering sales demand and the Renault-Nissan-Mitsubishi alliance’s anticipated mid-term plan, which will see each member focus on their core strengths in specific markets. Fewer markets for each, to be clear, with maximum use made of existing resources.
Recent reports claim the near future will see reduced production for the once-expansionist Nissan, with Europe playing a smaller role and the U.S. and China boosting their importance. Volume from those two countries would make up two-thirds of Nissan’s sales. Confirmation of the plan is expected next week.
The new report’s boosted layoff number, centered around Europe, jibes with claims that Nissan will relegate its presence in the continent to just a handful of strong-selling products; utility vehicles and commercial vans. Nissan is also expected to reduce its presence in Southeast Asia.
Jeff S on May 23, 2020
Agree Renault is in trouble as well. There will be more mergers and less choice as more and more consolidation of manufacturing to gain lower costs and more efficiencies. I doubt most of these companies will go away more likely they will get acquired by other companies looking to expand their presence.
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