Nissan's bold overhaul: Job cuts, sales for financial survival
CEO Makoto Uchida announced the company's restructuring plan, which involved tough and painful decisions.
The automotive industry is facing potential serious challenges. Another company, whose representatives are speaking very frankly, is Nissan. After the Japanese manufacturer experienced losses in the last quarter, CEO Makoto Uchida presented a bold plan for the coming years.
The main focus of the program, aimed at saving a substantial amount of money, is job reductions. Although the company has yet to present an official layoff schedule, the scope of the decision will be significant – around 9,000 people. This represents nearly 7 percent of the brand's global workforce.
Most of the affected employees will likely be production workers, as Nissan plans to decrease production capacity while simultaneously improving efficiency.
"One of the specific methods is changing the speed of the production lines and processes, which will allow for enhanced staff efficiency," said Nissan Vice President Hideyuki Sakamoto, as quoted by "Reuters."
The adjustment of production capacities will not, however, mean abandoning the 30 new or updated models announced last year, although the timelines for some launches may change.
There will also be no shortage of bold financial decisions. Nissan plans to sell its 34 percent stake in Mitsubishi. At current stock prices, this would bring Nissan about 629 million CAD, increasing the chances of financial stability during this challenging period.
