Nissan will cut 4,300 jobs and close two plantsJanuary 29, 2020
Difficult times are coming for Nissan, as the Japanese automaker is reportedly planning aggressive cuts in costs, leading to more than 4,300 layoffs and the closure of two plants.
According to four people close to the company’s plans cited by Reuters, Nissan is forced to take these rather brutal measures because of an unexpected drop in sales and an unsuccessful expansionary strategy introduced by former CEO Carlos Ghosn.
By 2023, the cost-cutting program is expected to add at least $ 4.4 billion to Nissan’s net profit. This was reported to the agency by two people. It is also reported that the company Datsun, which belongs to the auto giant, may disappear forever after a failed rethinking as a budget brand.
In addition to cutting at least 4,300 jobs and closing two production sites, a cost-cutting plan is likely to include a reduction in the automaker’s lineup, as well as many trim options.
Japan’s second-largest carmaker also plans to cut back on advertising and marketing budgets. Most of the job cuts will be at Nissan headquarters in the United States and Europe.
“The situation is terrible. Do it or die, ”an unnamed source close to Nissan’s senior management and company board said. Two sources said that most of the planned reductions and efficiency measures were submitted to the Nissan Council in November and are now fully approved.
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