Nissan has announced plans to lay off thousands of workers as it reduces global production to address declining sales in both China and the United States. The Japanese automaker will cut 9,000 jobs globally in a cost-saving move, reducing its worldwide production by 20%.
When approached by News for specifics on the job cuts of the workers, Nissan declined to provide details. The company currently employs over 6,000 people at its Sunderland manufacturing facility in Northeast England.
“These measures are part of a turnaround strategy and do not mean Nissan is downsizing,” said CEO Makoto Uchida, adding that the company aims to streamline and strengthen its operations.
Additionally, Nissan disclosed that Uchida’s monthly salary will be halved, with other top executives also taking pay cuts of workers.
Nissan’s stock dropped over 6% on Friday morning in Tokyo. Intense competition in China has driven prices down, putting pressure on foreign automakers who are struggling against local brands like BYD.
China has emerged as the world’s top producer of electric vehicles, a shift that has challenged many Western competitors who lag in the market. “Nissan, like other Japanese carmakers, was slow to embrace electric vehicles in China, which is now reflected in its performance,” commented Mark Rainford, a China-based automotive analyst.
In the US, Nissan also faces challenges with sales impacted by inflation and high interest rates. In response to weaker demand, many carmakers have lowered prices, which has reduced profit margins.
Last November, Nissan and its partners committed £2 billion ($2.6 billion) to develop three electric vehicle models at its Sunderland plant. Production will include electric versions of the Qashqai and Juke, alongside the next generation of the Leaf, which is already manufactured there.
