Nissan Motor Co. revealed on May 12 that it will shed more than 10,000 jobs worldwide, on top of cuts already announced, taking its total headcount reduction to roughly 20,000 positions about 15 percent of its workforce. The move follows a surprise profit warning in April, when the company flagged significant impairments linked to its ongoing turnaround efforts.
For the fiscal year ending March 31, Nissan now expects a net loss between ¥700 billion and ¥750 billion, sharply wider than the previously guided ¥80 billion deficit. The bulk of that shortfall stems from impairment charges exceeding ¥500 billion across North America, Latin America, Europe and Japan. An additional ¥60 billion in restructuring costs has also been booked as Nissan streamlines its operations.
“We are prudently adjusting our full-year outlook, taking into account a thorough review of our performance and the carrying value of our production assets,” said CEO Ivan Espinosa. The automaker will publish its detailed financial results on May 13.
Nissan’s cost‐cutting initiative forms part of a broader effort to restore profitability after years of weak sales and strategic missteps. The fresh round of layoffs will help reduce fixed expenses and improve cash flow as the company invests in new technologies and electric‐vehicle development.
Industry observers note that Nissan’s challenges mirror those faced by other major Japanese manufacturers, which have grappled with rising raw‐material costs, supply chain disruptions and slumping demand in key markets. By slimming its workforce and writing down underperforming assets, Nissan aims to reposition itself for more sustainable growth in an increasingly competitive global auto sector.
