Nissan is struggling to regain its financial stability and is planning to let off about 20,000 employees worldwide. The Japanese automaker has already announced 9,000 job layoffs and now wants to slash an extra 11,000 roles. These layoffs, which account for 15% of Nissan's whole workforce, demonstrate how serious the company's financial crisis is.
Big losses and tough competition, especially in China, have made things difficult. After its alliance with Renault was scaled back and a proposed merger with Honda fell through in February, the firm is also looking for a new industrial partner.A big part of their problem is losing loads of ground in China, where sales have plummeted by more than half in the last four years. While local Chinese companies like BYD, Chery, and Geely have been booming with their electric and hybrid cars, Nissan and other Japanese carmakers have been lagging behind on developing EVs for the Chinese market.The Japanese carmaker is also considering more reductions in production capacity, demonstrating how serious the financial crisis has become.
This includes the likely closure of one of its five Japanese auto assembly plants, as well as two other unidentified facilities and a Thai factory that closed in February.