日産にっさん 1万まん人にん超ちょう 追加ついかの人員じんいん削減さくげんの方針ほうしん 経営けいえい体質たいしつ強化きょうかできるか焦点しょうてん

Nissan Motor, whose business performance continues to worsen, has decided to cut more than 10,000 additional jobs both in Japan and overseas, bringing the total planned workforce reduction for the entire group to around 20,000.

We have determined that more drastic personnel reductions than before are necessary to turn the company around, and the key point will be whether we can strengthen our management structure.

Nissan Motor is expected to post a net loss of up to 750 billion yen for the last fiscal year due to an impairment loss recorded following a reassessment of the value of its factory assets.

The company announced last November a plan to reduce global production capacity by 20% and cut 9,000 jobs as part of efforts to turn its business around. However, according to sources, the company has now decided to cut an additional approximately 11,000 jobs both domestically and internationally, which will result in a reduction of about 15% of the groups total workforce.

As sales volumes have declined more than expected, we determined that more proactive measures are necessary to lay the groundwork for future growth.

The company has already decided to close three factories, including one in Thailand, and plans to further review its excessive production system by implementing additional personnel reductions.

Nissan is expected to announce additional personnel reductions at its financial results briefing on the 13th. With the business environment becoming even tougher due to the Trump administrations tariff measures in the United States, the focus is on whether Nissan can strengthen its management structure to generate profits through a review of its production system and improvements in product competitiveness.

Poor sales in the U.S. and China lead to excess production capacity Nissan Motor is experiencing sluggish sales in the U.S., China, and other markets, resulting in excess production capacity, which is contributing to the companys declining performance.

As a result of reassessing the factorys asset value to reflect the actual production situation, we will incur an impairment loss exceeding 500 billion yen, and last years financial results are expected to show the largest deficit ever.

Nissan has a global production capacity of about 5 million vehicles, but last years production was only 3.04 million units.

History of Production Reduction and Expansion After the collapse of the bubble economy, Nissan faced excessive production capacity in the past as well, which led to a decline in its business performance.

After the collapse of Japans bubble economy, the company fell into a serious management crisis, recording a massive net loss of 684.3 billion yen in fiscal year 1999. Under the leadership of CEO Carlos Ghosn, measures such as closing the main Murayama plant and cutting over 20,000 jobs were implemented.

As a result, in fiscal year 2000, the company turned around and posted a surplus of over 330 billion yen, after which Mr. Ghosn shifted toward an expansion strategy.

At the time of taking office, sales had not yet reached 3 million units, but they grew rapidly, surpassing 4 million units in fiscal 2010, and expanding to a peak of 5.77 million units in fiscal 2017.

During this time, factories were newly established around the world and production capacity was expanded, but Mr. Ghosn was arrested in 2018 over issues such as huge compensation, and by then, the expansion strategy started to have negative effects.

Unable to introduce new cars with strong appeal, and especially in the United States, continued reliance on discounts for sales has led to sluggish business performance.

In the financial results for fiscal year 2019, the company fell into a net loss exceeding 670 billion yen. Makoto Uchida, who became president in 2019, announced a shift from an expansion strategy to focusing on quality over quantity by increasing profit per unit.

We will secure a profit in fiscal year 2021 by closing factories in Spain and Indonesia and reducing production capacity from about 7 million units to 5.4 million units.

However, due to the decline in product competitiveness, the decrease in sales could not be stopped, and the company had announced a plan to close three factories, including those in Thailand, by next fiscal year, reduce production capacity from 5 million to 4 million units, and cut 9,000 jobs.

President Iván Espinosa, who took office last month, is required to simultaneously tackle the challenges of streamlining excessive facilities, building a system that can generate profits, and recovering sales by strengthening product competitiveness.