Nissan Trims Workforce

Nissan’s Shake-Up

Nissan is finding itself in some rough seas these days. It’s like they’re trying to bail out a sinking ship with a sieve. Not too long ago, they announced that 9,000 jobs were getting the axe. Now, they’re doubling down with an additional 10,000 job cuts. That’s 19,000 jobs, bam, gone. This all adds up to about 15% of Nissan’s entire global workforce being shown the door.

The Grim Numbers

Where did it all start going sideways? Well, a few weeks back, Nissan forecasted a staggering $5 billion net loss for the fiscal year that just ended in March. Their financial report was uglier than a mud fence, and these drastic measures are part of their scramble to find some footing. By May 13, more insight into this grim tale is expected as they reveal their full-year earnings report. It’s like waiting for the next episode of a real-life drama to see how it unfolds.

Stumbles and Strategy

Nissan has been trying to recover its footing with a plan that initially targeted downsizing production capacity by 20% and shutting down some manufacturing plants. Unfortunately, their goals hit a roadblock. Low 2024 sales, costly restructuring, and tariffs have been weighing Nissan down in the U.S. market, hitting harder than a linebacker.

Leadership has been in a revolving door as well. Makoto Uchida, the former CEO, exited stage left in March after failing to merge with Honda. Now, Ivan Espinosa is steering the wheel, with new model releases as part of their turnaround strategy. Let’s see if he can turn the ship before it hits an iceberg.

Voices from the Past

And then we have Carlos Ghosn, the ex-Renault-Nissan chief. He’s not shy about sharing his thoughts from wherever he’s hiding out these days. In an interview with French media, he didn’t hold back, suggesting Nissan is in “dire straits.” He’s throwing some serious shade at Nissan’s current management and their sluggish decision-making, almost saying ‘I told you so’. According to Ghosn, he anticipated this decline and believes a split between Nissan and Renault is brewing.

A Look Ahead

While Nissan is trying to regroup, Carlos Ghosn is watching from the sidelines, criticizing not only Nissan but Renault as well, suggesting they’re retreating to being a ‘small European manufacturer’. As Nissan gears up for its U.S. model launches, Espinosa and his team hope these new vehicles can pump some much-needed life back into sales figures. The automotive world is waiting with bated breath to see if these changes will spell triumph or tragedy for Nissan’s future.

What everyone can see is that it’s going to take a lot more than just layoffs and new models to steer Nissan out of this storm. While Ghosn is quick to criticize, the focus now is on how Espinosa will navigate the company’s most turbulent waters yet.