Nissan's Bold Move: Workforce and Cost Reduction Amid Global Challenges

Nissan is making significant cuts to its operations with a 15% reduction in its global workforce, translating to about 20,000 jobs lost. This move comes as the company reports fiscal losses amid declining vehicle sales, especially in China.

In addition to workforce reductions, Nissan announced its plan to consolidate its manufacturing by closing seven of its 17 auto plants. The intention is to streamline operations and respond more effectively to market shifts as part of its recovery strategy.

The automaker's financial challenges have been compounded by tariffs imposed by former US President Trump, hindering results. Despite a 670.9 billion Yen loss for the fiscal year ending in March, CFO Jeremie Papin remains optimistic, citing sufficient cash reserves to support the ongoing transformation.

(With inputs from agencies.)