The Japanese automaker has announced major cuts in its workforce and production, with the elimination of 9,000 jobs and a 20% reduction in production capacity.
Nissan Motor announced a $2.6 billion cost saving plan, including 9,000 job cuts and a 20% reduction in global production capacity as it battles falling sales in China and the United States https://t.co/eYdyLK2ZXy pic.twitter.com/ZOixRxBatA
— Reuters (@Reuters) November 7, 2024
Lower sales in the second quarter of 2024, particularly in the US and China, are one of the main reasons for the cuts, which will save the company a total of $2.6 billion in expenses.
The company is struggling to compete in China, where sales are down 13% year-on-year, as well as in the US, with a 2.3% decline over the same period.
What’s more, it lacks a credible range of hybrid cars to compete with affordable, technologically advanced electric and hybrid vehicles.
Nissan’s share price has indeed fallen sharply on the Tokyo Stock Exchange, losing JPY 369 (-36.00, or -8.90%) in the last five days since the announcement of the reduction.