Nissan's policy for additional staff reduction: focus on strengthening management structure
Nissan Motor, which continues to suffer from poor performance, has decided to cut staff by more than 10,000 people both domestically and internationally, and will reduce staff by 20,000 people across the group, along with previous plans.
This is because we have decided that it is necessary to reduce personnel more intensively in order to rebuild our management, so the focus is whether we can strengthen our management structure.
日産自動車は工場の資産価値の見直しで減損損失を計上したことに伴い、昨年度1年間の決算が最大で7500億円の最終赤字になる見通しです
Nissan Motor Corporation has recorded impairment losses due to reviewing the value of its factory asset, and is expected to have a final deficit of up to 750 billion yen in its financial results for the past year.
In November last year, the company announced plans to cut its production capacity by 20% and reduce 9,000 employees worldwide in order to rebuild its management, but according to officials, it has decided to cut its additional staff by approximately 11,000 both domestically and internationally, which will reduce approximately 15% of the entire group's employees.
With sales volumes dropping more than expected, we decided that more in-depth measures are needed to create a foundation for future growth.
The company has decided to close three factories, including Thailand, and in conjunction with additional staff reductions, it has decided to further review the excessive production system.
Nissan is expected to clarify its policy for additional staff reductions at its financial statements on the 13th, and as the business environment becomes even more severe due to the impact of the US Trump administration's tariff measures, the focus is whether it can strengthen its management structure so that it can generate profits by reviewing its production system and improving product capabilities.
日産自動車はアメリカや中国などで販売不振が続いて生産設備が過剰となり、業績悪化の要因となっています
Sales are poor in the US and China and other areas. Nissan Motor has continued to suffer poor sales in the US and China and other areas, resulting in excessive production equipment, which has led to a deterioration in performance.
This time, as a result of reviewing the value of the factory's assets in a way that suits the actual production situation, the company will suffer an impairment loss of over 500 billion yen, and it is expected that it will be the largest deficit ever.
Nissan has approximately 5 million units worldwide, but last year its production capacity was only 3.04 million units.
日産は過去にも生産設備の過剰に直面し、業績を悪化させてきました
History of production reduction and expansion Since the collapse of the bubble economy, Nissan has faced an excess of production facilities in the past, causing its business performance to deteriorate.
After the collapse of Japan's bubble economy, the company fell into a serious business crisis, resulting in a huge final deficit of 684.3 billion yen in fiscal 1999, and under the position of Carlos Ghosn, who became Chief Operating Officer, he proceeded with closing its main Murayama Factory and cutting down more than 20,000 people.
As a result, in fiscal 2000, it suddenly turned into a profit of over 330 billion yen, and then Ghosn turned to an expansionary policy.
The number of units sold, which had not reached 3 million when he took office, has rapidly increased, exceeding 4 million units in 2010, and in 2017, the peak of the company's production to 5.77 million units.
During this time, he built new factories around the world to expand his production capacity, but Ghosn was arrested in 2018 over huge compensation and other factors, and by that time he began to work negatively on the expansion route.
Unable to introduce new cars with powerful products, and in the US, sales continue to rely on discounts, particularly in the US, performance is sluggish.
In its fiscal year 2019 financial results, Uchida Makoto, who took office in 2019, announced a shift from "quantity to quality," which increases profits per unit.
By closing factories in Spain and Indonesia, production capacity will be reduced from approximately 7 million units to 5.4 million units, and will secure a profit in fiscal 2021.
However, the decline in product power has not stopped the decline in sales, and by next fiscal year, the company has announced plans to close three factories in Thailand and other countries, reducing production capacity from 5 million to 4 million units, reducing 9,000 employees.
President Ivan Espinosa, who took office last month, is required to simultaneously tackle the challenges of resolving excess equipment, establishing a system that can make profits, and regaining sales through strengthening product capabilities.
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