Nissan is reportedly planning to cut at least 4,300 white-collar jobs and close down two of its manufacturing sites as part of a cost-cutting initiative, Reuters reports, citing information gleaned from multiple sources.
The automaker, Japan’s second largest, is aiming to reduce non-vital spending in the wake of an unexpected slump in sales. The moves are part of broader plans to add at least 480 billion yen ($4.4 billion) to its bottom line by 2023.
The latest planned action comes on top of a turnaround plan that was unveiled in July last year. The sources told the newswire that actions will include cutting the range of vehicle models that are not performing as anticipated, as well as reducing the array of product options and trims in each line. The report adds that Nissan executives estimate up to 40% of its global manufacturing capacity is unused or under-used.
Meanwhile, jobs will be cut primarily at head offices in the United States and Europe, and advertising and marketing budgets will also be reduced, the sources said. “The situation is dire. It’s do or die,” a source close to Nissan’s senior management told the news agency.
According to two sources, most of the planned cuts and measures to improve efficiency were presented last November to Nissan’s board, which gave its general blessing for the action. In December, it was reported that the company was initiating cost-cutting measures to combat plummeting profits.
Nissan has had a tumultuous 2019, with ex-boss Carlos Ghosn having left the company after being accused of under-reporting his corporate salary, using Nissan to shoulder personal investment losses, and other acts of financial misconducts. Ghosn, who was under house arrest in Japan before making a spectacular escape to Lebanon in December, has said that Nissan will probably go bankrupt within two to three years.
Several top executives have left the automaker as well, one of which was vice COO Jun Seki, who resigned from his role as the No 3 less than a month after he was appointed. A strained relationship with Alliance partner, Renault, further compounds the list of problems that Nissan is facing.
In July last year, the automaker had announced that it would be cutting 12,500 jobs globally as part of a massive restructuring process, a move that would reduce its overall global workforce of 139,000 by around 9%.
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Geely can help Nissan, P1 no job cuts. Syukur beb
To Jepun fanboi: HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!
Don’t think Honda is also good. Because Honda can collapse anytime means DRB Honda will also close shop too. It will lose thousand jobs in Honda Melaka Assembly Plant because aftersales service and quality is bad.
Finish Honda Malaysia and their arrogant salesmen. Even upcoming City Turbo and other Honda models doesn’t have AEB, land departure warning and blind spot monitor. Nobody will touch this brand. Salesman will start crying. So called as “Power of Nightmare Cars”
As majority in Malaysia fed up of driving honda cars because too many quality issues on newer Honda models after bought for less than 1 year. When go to aftersales service, people also complaining most of the aftersales service dealer. Cannot solve. Shows that technicians are having half past six, lying, didn’t repair at all, never repair other peoples car at all.
Yet, some of them are still buying Honda cars with brainless. Also, come here hating kimchi cars with low resale value and hating mazda. Just look at safety specs, most of Honda models are really kosong spec. Compare to Mazda, Toyota and Hyundai Ioniq comes with blind spot monitor, AEB, land departure warning and others. No wonder, many mazda CX-5 and Proton X70 everywhere than looking Honda CRV is now rare.
Malaysians rather buy mazda. This comes with 5 years warranty as Honda. Bermaz service is better and they already improved their service than honda. Even CKD Mazda CX-5 looks so so but better than most Honda models. So Honda Malaysia is dead.
under Drb. Honda is doomed from Day 1.
DRB doesn’t own Honda. Neither are they responsible for Honda’s Takata airbag fiasco
Still cannot beat Proton. Lost Rm4 million per day for the past 20 years until Li Chunrong took over.
On top of that, they took about RM20 billion bailout.
All the money from the rakyat. That is so shameful
Now Proton is doing so well because of a foreign CEO. this shows, foreign CEOs are better than local ones
One thing I admire about Ghosn is that he tak takut bini. A real leader is never scared of his bini.
This is something we must learn. A leader or a cEO must wear the pants.
My buddy Ghosn left Nissan in a mess. HAHA!!
My buddies the local CEOs left Proton in a mess. It took a China CEO to bring about profit in 6 months what local CEOs could not do in 20 years
No wonder they can build hospital in 48 hours. If in Malaysia, it would have taken 10 years.
Can I adviced you something ??
Don’t lie when it so easy to see your lie.
karma?
Previous Ghosn & Najib misconduct cursed them.
Ghosn & Najib save them but they got rejected all thanks to our work behind the shadows. They could not fight our establishment. Muahahahaha
Ghosn never stole rakyat money nor did his wife buy 280 Birkin handbags at RM500k each
Syukur x10001, that p1 and p2 staffs are still having their jobs.
Betul sis..Msia aman, kerajaan prihatin terbaik..
Tan Chong will go in and buy out Nissan considering it controls Nissan’s sales and manufacturing in SEA. Bit wait for them to go bankrupt in 3 years as Shown predicted then it’s fire sales for the brand.
Tan Chong themselves aren’t doing so well. Their aren’t selling much as reflected by Nissan global sales.
Geely Automobile Holdings Limited (Group) announced that the total sales volume of the Group (including the sales volume of LYNK & CO branded vehicles sold by the Group’s 50% owned joint venture) for the month of July 2019 was 91,375 units, a decrease of approximately 24% from the same period last year
Call Geely…
What Ghosn said is coming true! Didn’t I tell you guys he is like the Messiah? Now you know his predictions are spot on better than Nostradamus.
Never should have doubted the man that saved you. Now you groveling back to Renault for new cars. Nissan is so ungrateful. When they were down, when they were practically bankrupt, they went to Renault begging on their knees for help.
And Renault was so generous to send in their best A Team and their best CEO and tons of money to save them. And save them they did, all thanks to Ghosn whose achievements are like Messiah. And what the japanese did, they backstabbed him and paraded him around to be shame just like Messiah. They were about to sacrifice him just like Messiah but he was smart to run in the end. Japan didn’t syukur for him coming to save them but instead wanted to end him. And there are many examples like these japanese that never syukur for being saved.
These japanese and others like them don’t deserve leaders such as Ghosn & Najib & Mesiah that only appears once in 2000 years, willing to put everything they had into saving their company/country/souls, but see what those got saved do to them? Jailed, spat at, publicly humiliated, willing to sacrifice them w/o thinking what they had done to save them.
The world and its people and history doesn’t deserve such luminaries.
najib. oh please its me, sir samy vellu that saved the malaysia auto industry
Diamlah! You are my crony, not his. Remember that! I built you just as I built him, and I can destroy you just as I destroyed him. You are all under my control until I croak. Muahahahaha!
No lah..Gosan said is for the next 2 years. This is too soon.
Nissan business never shined under their traditional owner. At times it even got worse i.e during financial crisis. That’s why outsider i.e Ghosen was invited in to help. Unlike Toyota, they’re managed more like a GLC, many redtapes, politic. That’s also why the newly appointed CEO quit in 2 months time after appointed.
Ghosen did and hid dirty stuffs… got scooped. He got rid off all nemesis, but then got voted out.
Can I adviced you something ??