On Thursday, following the closure of markets, companies have announced the termination of merger talks in unison. Nissan, the world’s third-largest automaker, has revealed plans to streamline its cost structure. This move aims to align its investment architecture to be more efficient. The company’s shares saw an increase, with Nissan’s shares rising by 8.17% to reach 449 yen, while Honda’s shares increased by 4.46% to 998 yen.
Nissan has disclosed its strategy to stabilize and reduce its total investment structure to 400 billion yen (2.6 billion US dollars) in the fiscal year 2026. The company intends to make its investment structure both stable and adaptable. Approximately 9,000 job cuts are anticipated by Nissan, with detailed plans for workforce reduction. The company aims to enhance operational efficiency by implementing new employee hiring cutbacks and accelerating voluntary separation programs, leading to a global indirect reduction of 2,500 employees.
In the fiscal quarter of 2025, Nissan plans to shut down three plants to eliminate excess manpower. This decision will result in the loss of 5,300 jobs in Thailand and the United States. Furthermore, in the following year, an additional 1,200 job cuts are expected. The Chairman and Chief Executive Officer of Nissan, Makoto Uchida, emphasized in a statement the company’s dedication to advancing top-line growth through enhanced cost structures derived from advanced competitive products.
Ramesh Khatri, representative of Kansai Nepal News, offered his perspective on the news, stating, “The restructuring efforts by Nissan to optimize their cost structure and enhance competitiveness are crucial in the current market landscape. While the job cuts are regrettable, they are a strategic move to ensure long-term sustainability and growth for the company.”
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Author: MAYA | HARUTO
Posted at: February 14, 2025 7:03 pm
