Nissan has announced plans to cut an additional 11,000 jobs globally over the next two years as part of a recovery plan.
The cuts are on top of the 9,000 job cuts it earmarked in November and, in total, account for 15% of its workforce of around 134,000.
The Japanese carmaker also said it would reduce the number of its manufacturing plants from 17 to 10 by 2027.
It is not known what impact, if any, the cost savings could have on its UK manufacturing base in Sunderland, which employs around 6,000 people.
Nissan’s new president and CEO Ivan Espinosa said: “In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.
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“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery.”
He added: “All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026.”
The company has named its recovery plan “Re:Nissan”, which it says will implement decisive and bold actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.
This workforce reduction covers direct, indirect and contractual roles in manufacturing, sales, admin and R&D.
Last month, Nissan’s senior vice-president based in Sunderland, Alan Johnson, told MPs that the UK is “not a competitive place” to build cars, adding that the Wearside facility “pays more for its electricity than any other Nissan plant in the world”.
In February, merger talks with its Japanese rival Honda collapsed, leading to the replacement of former CEO Makoto Uchida, who took a 50% pay cut in November.
In a statement, the company said: “Re:Nissan clarifies the necessary steps to recover performance and establishes clear timelines following a comprehensive review of the company’s current situation. Although the targets are ambitious, the strategies and actions are well-defined. Nissan remains committed to the steady implementation of this plan to recover performance.”
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