The Nissan Japanese automaker is believed to be struggling to cut costs, so it will lay off more than 4,300 office workers and close two factories.
According to Reuters, Nissan insiders said the company was forced to apply these measures due to unexpected sales and the failure of expansion strategies under former CEO Carlos Ghosn.
This cost-cutting program is expected to save Japanese automakers at least 480 billion yen ($ 4.4 billion) between now and 2023.
In addition to reducing at least 4,300 office workers and closing two factories, Nissan’s cost-cutting plans may include changing product categories and product options. Japan’s second largest automaker is also expected to cut its advertising and marketing budgets. Most employees will have to quit their jobs at company headquarters in the US and Europe.
“The current situation is very bad. It is a job to do, or to die,” a source told Reuters news agency. Two sources said most of these cuts had been submitted to Nissan’s board since November last year and had been given a green light.
The sources also said that many of the new cars that were part of Ghosn’s global expansion campaign in markets such as India, Russia, South Africa and Southeast Asia, mainly under the low-cost brand Datsun, failed to reach the target. expected sales. More worrying, Nissan executives at Yokohama headquarters (Japan) estimate that the company is suffering from an excess of 40% of global production.
Some are concerned that Nissan will report a loss in the 2019 fiscal year ending in March. Company representatives declined to comment on the above information.