Experiencing Losses, Nissan Lays Off Thousands Of Workers To Delay Production Of New Models

Nissan Kicks. (Doc. Nissan Global)

JAKARTA - Bad news came from a Japanese car manufacturer, namely Nissan, who is currently shrouded in significant financial losses.

Based on a report from Drive, quoted on Tuesday, November 12, the manufacturer was forced to cut 9,000 jobs globally, and even cut the number of car production by 20 percent.

In total there are 130,000 workers affected worldwide, especially those producing cars in Japan, China, Mexico, the United States, and several other countries.

Nissan CEO Makoto Uchida stated that Nissan was in an 'emergency mode' by being forced to cut salaries for leaders, including himself by up to 50 percent starting next month.

In addition, Nissan, which is part of Renault's three attacks, Nissan, Mitsubishi, also plans to sell most of its 34.07 percent stake in Mitsubishi and reduce fixed costs by 300 billion yen or around Rp30 trillion.

The measures were taken after the company posted a loss of 9.3 billion yen or nearly IDR 1 trillion in the third quarter of 2024, from July to September. The loss led Nissan to revise its 2024 sales forecast from 3.7 million to 3.4 million vehicles, which was announced with The Arc's business plan in March 2024.

"We have no choice but to revise some of the plans... I am very sorry to face this challenging situation in the early year of 'The Arc'," Uchida said in a statement.

The move will also delay plans for new models, previously manufacturers born since 1934 announced earlier this year planning to produce 30 new models by 2027 in a mix of battery-electric models, plug-in hybrid electric, and 'e-power' hybrid models.

Sales of free dives

Nissan recorded global sales falling 3.8 percent by the end of September 2024, Nissan faces its biggest challenges in the world's largest car market, China and the United States (US) respectively.

For the Chinese market, Nissan's sales fell 14.3 percent YoY until the end of September 2024 after a 16.1 percent drop in the full calendar year 2023. Meanwhile, Nissan's sales also fell 15.5 percent, reportedly a lack of hybrid models as a major obstacle.