Nissan's Layoff Storm Not Over Yet, Employee Reductions Continue

KatadataOTO – Nissan has not yet managed to escape its financial problems. The Japanese company is currently undergoing restructuring.

However, their efforts have not yet yielded positive results. Because Nissan intends to carry out another round of layoffs (PHK).

Citing Reuters on Thursday (07/080), the workforce reduction is planned to take place at the Nissan Automotive Europe factory in Montigny-le-Bretonneux, France.

“Management and the workers' union have agreed to discuss voluntary resignations before layoffs occur,” the online media report wrote on Wednesday (07/08)..

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Negotiations are scheduled to be completed by October 20, 2025. Meanwhile, the details of the decision will be communicated to all employees in the following month.

“We are conducting this process with great care, transparency, and in compliance with all applicable legal provisions,” said Massimiliano Messina, Vice Chairman of Nissan for the European Region.

However, Messina stated that so far no final decision has been made regarding the layoffs of Nissan employees on the Blue Continent.

However, this discussion process marks the continuation of the massive restructuring program announced by Ivan Espinosa, Nissan's new CEO.

As is known, Ivan took swift action to save Nissan from the brink of bankruptcy. Starting with a global workforce reduction of up to 15 percent.

Then, a reduction in product capacity by up to 30 percent worldwide, to only 2.5 million units per year. Finally, a reduction in the number of factories from the original 17 locations to 10 sites.

This is expected to save up to 3.4 billion dollars in operational budget, or the equivalent of Rp 57 trillion.

As a reminder, Nissan experienced a net loss of 750 billion yen, or the equivalent of Rp 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 to be only around 80 billion yen, or the equivalent of Rp 8.97 trillion.

Nissan's Efforts to Survive

It should be noted that 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, those discussions did not find a clear resolution.

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The reason was that Honda wanted to make Nissan a subsidiary instead of a partner company.

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

This is being done to avoid bankruptcy and maintain the alliance. However, these efforts still seem to have reached a dead end.