Nissan restructures: 9,000 jobs at risk in survival bid
CEO Makoto Uchida announced the company's restructuring plan, a move that involved difficult and painful decisions.
The automotive industry is facing the threat of a severe crisis. Nissan is another brand facing tough times. After the Japanese manufacturer ended the last quarter with losses, CEO Makoto Uchida presented a radical plan for the coming years.
The main focus of the programme, which aims to save a substantial amount of money, is job reductions. Although the company has not yet presented an official redundancy schedule, the scale of the decision will be significant—around 9,000 individuals. This represents nearly 7 per cent of the brand's global workforce.
Most affected will likely be production workers, as Nissan plans to reduce production capacity while increasing efficiency.
"One specific method for this is to change the line speed and shift patterns, thereby increasing the efficiency of operational personnel," stated Nissan Vice President Hideyuki Sakamoto, as quoted by "Reuters".
However, modifying production capacities will not mean abandoning the 30 new or updated models announced last year, although the timelines for some launches may change.
Bold financial decisions will also be made. Nissan plans to sell its 34 per cent stake in Mitsubishi. At current stock prices, Nissan would earn about £376 million, thus increasing its chances of financial stability during this challenging period.
