Nissan Hit by Layoff Storm, Plans to Dismiss 20 Thousand Employees

KatadataOTO – The storm of layoffs (Termination of Employment) is not only happening in Indonesian industries. But it is also being experienced by Nissan, a car manufacturer from Japan.

Citing a report from NHK World Japan, on Tuesday (13/05) Nissan plans to lay off more than 10 thousand workers worldwide.

With the number above, the number of Nissan employees to be laid off will reach 20 thousand people or about 15 percent of Nissan's total global workforce.

"A source said the company plans to make additional layoffs because unit sales have declined more than predicted," wrote the Japanese media outlet.

Photo : KatadataOTO

It was further mentioned that Nissan recorded a net loss of 750 billion yen or the equivalent of IDR 84 trillion.

This amount occurred during the 2024 fiscal year or from April 1, 2024, to March 31, 2025.

Whereas in early March, Nissan's losses were estimated at only around 80 billion yen or the equivalent of IDR 8.97 trillion.

However, the company's condition has worsened. So it is forced to cut the number of its employees.

"In addition, they will cancel plans to build an electric vehicle battery factory in Kitakyushu City, western Japan," continued this media outlet.

It doesn't stop there, Nissan's worsening condition has also made them plan to close three production facilities in Thailand and other countries.

"The company is expected to announce the new plan at a press conference to release business results on Tuesday," the Japanese media outlet affirmed.

Just a reminder, Nissan has been struggling with worsening financial conditions for some time.

Especially amidst the onslaught of manufacturers from China who are increasingly flooding the automotive market in a number of countries.

Nissan's Efforts to Survive

It should be noted, Nissan has taken a number of steps to maintain the company's sustainability in the business world. 

For example, by holding talks with Honda regarding a merger. However, the discussion did not find a clear path forward.

The reason is, Honda wanted to make Nissan a subsidiary instead of a partner company.

Photo : Reuters

Then Nissan Motor Corporation and Renault Group revealed that they are restructuring the alliance.

This is done to avoid bankruptcy and maintain the alliance.

Nissan has even agreed to sell 51 percent of its shares in Renault Nissan Automotive India Private Ltd (RNAIPL) to Renault.