A Japanese automaker, Nissan has announced plans to close seven facilities and lay off an additional 11,000 workers worldwide as it restructures its operations in response to poor sales.
Earnings have been severely impacted by declining sales in China and steep discounts in the US, the company’s two largest markets. Additionally, a planned merger with Honda and Mitsubishi fell through in February.
With the most recent reductions, the corporation has now laid off almost 20,000 employees, or 15% of its staff, in the last 12 months. The location of the layoffs and whether Nissan’s Sunderland factory will be impacted were not immediately apparent.
Nissan has over 133,500 employees worldwide, including roughly 6,000 in Sunderland. Ivan Espinosa, the company’s CEO, stated that two-thirds of the most recent layoffs will occur in the manufacturing sector, with the remaining positions coming from sales, administrative positions, research, and contract workers.
The most recent layoffs follow 9,000 job losses Nissan announced in November as part of a cost-cutting measure that it said would lower output by a fifth worldwide. Negotiations between Nissan and its bigger rival Honda broke down in February when the companies couldn’t agree on a multibillion-dollar partnership.
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