Nissan announces additional cuts
Japanese automaker Nissan continues to reduce staff due to financial difficulties. The company plans to lay off another 10 thousand employees, in addition to the 9 thousand reported earlier. Thus, the total number of cuts will reach approximately 20 thousand people, which is about 15% of the company’s global workforce.
This news came on the eve of Nissan’s annual report, which is scheduled for May 13. Recall that the company had already forecast a record net loss of $5 billion for the last financial year. Previously, Nissan also announced the closure of production facilities and a 20% reduction in production volumes.
Problems and comments from the former manager
The former head of the Renault-Nissan alliance, Carlos Ghosn, who is currently on the international wanted list, expressed his opinion on the current state of the company. He called the situation at Nissan critical:
I predicted the decline of Nissan and the collapse of the alliance
Ghosn accuses the company’s management of slow decision-making and a failed strategy. In particular, he criticizes the failed merger talks with Honda, comparing it to “an alliance between Renault and Peugeot in France.” The former top manager also noted that Renault has returned to the status of a small European manufacturer without global influence.
Today, Nissan is under the leadership of Ivan Espinosa, who will have to solve complex tasks of stabilizing the company. Among the planned measures is the launch of new models that should help recover falling sales. However, market conditions remain difficult, and the consequences of the pandemic and global economic challenges continue to put pressure on the auto industry. In such conditions, the strategic decisions of the company’s management will be decisive for its future.