Nissan Plans Factory Closures, 15% Workforce Cut to Boost Profitability

Nissan Motor Co., the third-largest automaker in Japan, is reportedly considering the closure of several factories both in Japan and overseas as part of its cost-cutting measures. According to sources, the company is evaluating the shutdown of two key facilities in Japan: the main vehicle assembly plant in Yokohama, Kanagawa Prefecture, and the commercial vehicle production plant in Hiratsuka, Kanagawa Prefecture. These two plants account for a significant portion of Nissan's domestic production capacity. Additionally, Nissan is reviewing the closure of five overseas factories located in Mexico, South Africa, India, and Argentina.

This move comes as Nissan faces declining sales and seeks to streamline its production capabilities. By reducing its workforce and closing underutilized factories, Nissan aims to lower its operational costs and improve its financial performance. The company has announced a new round of cost-cutting measures, including plans to reduce its global workforce by approximately 15% and decrease the number of production facilities from 17 to 10. This significant restructuring effort is part of Nissan's broader strategy to enhance its competitiveness in the global automotive market.

Nissan's decision to downsize its operations is expected to have a substantial impact on the affected regions. The company is likely to face challenges in managing the transition for its employees and communities. However, Nissan has stated that it is committed to maintaining transparency with its stakeholders and will communicate any relevant updates as necessary. The company's official statement on the matter emphasizes that reports about potential factory closures are purely speculative and not based on any official information from Nissan.

Nissan's restructuring efforts are aimed at achieving profitability and securing its position as a leading automaker. By focusing on more efficient and profitable operations, the company hopes to return to profitability and improve its financial performance. The planned closures and workforce reductions are expected to result in significant cost savings, which will be crucial for Nissan's long-term success in the competitive automotive industry.