Bangkok, November 25: Nissan layoffs continue, as the Japanese automobile company plans to reduce 1,000 people from Thailand. This comes as Nissan announced that it would reduce nearly 7% of its global workforce by fiscal 2026. Therefore, by ending March 2027, around 9,000 people from the Nissan workforce would be eliminated.
The Nissan job cuts were announced after the company’s poor financial performance. The company also announced a 20% reduction in its production capacity to reduce costs. According to several reports, the Nissan layoffs will affect Thailand staff and relocate about 1,000 employees by Fall 2025. Intel Selling Its Properties To Save Costs After Announcing Layoffs of 15,000 Employees This Year: Report.
The Japanese automobile giant has been trying to adopt a restructuring exercise to manage its costs, therefore announcing job cuts and reducing its plant’s production capacity. The situation developed when Nissan, the third-largest automaker in Japan, suffered from lower-than-expected sales.
The reports said that Thailand’s car market has been dominated by Japanese automobile companies; however, just like European companies, these firms are suffering from severe competition as Chinese manufacturers push their electric vehicles, achieving a significant foothold in the car market. Nissan reported an operating profit of 32.9 billion yen in the July-September quarter, down 85% from 208.1 billion yen in the corresponding quarter a year earlier.
Amid these struggles, Nissan sales were down 29.7% from the previous year during the 2022-23 fiscal year, and the company could sell 14,224 units. The domestic market of Thailand saw four cars manufactured by the Japanese automaker and for exports. Following its strategy, Nissan is expected to slash 9,000 jobs as it tries to reduce its costs and also reduce its production by 20%. Bosch Layoffs: 5,000 Employees To Be Laid Off by German Multinational Tech and Engineering Firm To Reduce Costs, Stay Competitive in Industry Amid Automotive Industry Crisis.
The reports mentioned that Nissan CEO Makoto Uchida stated that the job cuts and downturns did not imply that the company was shrinking in size; however, these measures aimed to make the business more resilient. He said that these efforts would help the company reorganise management, making it respond quickly and flexibly to the changes in the business environment. Nissan layoffs are also set to hit 1,000 individuals in the United States.
(The above story first appeared on LatestLY on Nov 25, 2024 08:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
