Restructuring Continues, Nissan Cuts 10 Thousand Workers Around The World

Nissan Rogue. (Doc. Nissan USA)

JAKARTA - Bad news has hit Nissan again. This automotive manufacturer from Japan is reported to have terminated employment (PHK) as many as 10 thousand workers worldwide.

Reported by Japanese media NHK written by Reuters on Tuesday, May 13, the move had to be taken to make the manufacturing business slimmer and stronger after demand for vehicles weakened in its two largest markets, namely China and the United States (US).

The number of 10 thousand workers increased the number of lists of layoffs for Nissan employees to 20 thousand people or 15 percent of the total workforce.

The manufacturer, based in Yokohama, Japan, has lost its spurs in the hybrid segment in the US, where the electrification market is growing.

In addition, Nissan also plans to launch 10 new models for the Chinese market in the coming years to restore a positive trend in one of its biggest markets.

Nissan CEO Ivan Espinosa said he was restructuring Nissan's operations and previously said the company was considering additional measures.

Previously, Nissan had 133 thousand workers by March last year. However, the manufacturer announced cutting its 9 thousand staff and reducing its global capacity by 20 percent in November 2024.

Another step taken by Nissan is to close its factory in Thailand in June along with two other facilities whose location has not been disclosed.

Recently, Nissan also confirmed canceling plans for the construction of a $1.1 billion plant, which will receive government subsidies, for electric vehicle batteries on the island of Kyushu, Japan.

The Japanese government itself has previously allocated subsidies of up to 55.7 billion yen for this battery factory project. The plant, which is planned to have an annual production capacity of 5 gigawatt-hours, is expected to start operating in July 2028 or after.