Nissan is planning to cut about 15% of its global employees, or about 20,000 employees, a move that comes as the company's just announced fiscal year losses, accompanied by a decline in automobile sales in China and other countries.
Nissan announced it would cut the number of its auto plants from 17 to 10, part of its so-called recovery plan, aiming to take “decisive and bold measures to improve performance and build a streamlined and resilient business that can quickly adapt to market changes.”
The Yokohama-based automaker said the tariffs imposed by U.S. President Donald Trump on auto imports have also caused damage to his performance.
Nissan plans to cut costs by about 250 billion yen (about 1.7 billion US dollars) in the upcoming fiscal year compared with fiscal year 2024, which just ended in March.
Nissan lost as much as 670.9 billion yen (about 4.5 billion US dollars) in the fiscal year ending March, a loss that was significantly reduced from the 426.6 billion yen profit achieved in the previous fiscal year.
The restructuring expenses also had an impact on its financial situation. Financial Director Jeremy Paping told reporters that the automaker faces serious challenges in achieving a turnaround, but stressed that the company has sufficient cash flow to accomplish this.
