Nissan's Global Restructuring: A Tough Road Ahead

Nissan Motor is set to cut over 10,000 jobs globally as part of a major restructuring effort, following weak sales in China and the U.S. The company anticipates a record net loss due to impairment charges and is realigning operations to strengthen its position in the competitive auto market.

Nissan Motor announced it will cut more than 10,000 jobs worldwide, raising its total layoffs to about 15% of its workforce. This decision comes amid efforts to streamline operations following disappointing sales figures from China and the United States, as reported by Japan's NHK.

The automaker, ranked third in Japan, is scheduled to report its annual business results, signaling losses between 700 to 750 billion yen. Nissan has struggled to capitalize on the hybrid and electric vehicle trends, particularly in the U.S. market, affecting its earnings significantly.

CEO Ivan Espinosa, who recently succeeded Makoto Uchida, is spearheading Nissan's strategic restructuring. Plans include the launch of new models in China and plant closures to optimize global output. Additionally, the company abandoned a plan to construct an EV battery plant in Kyushu, citing deteriorating financial performance.

(With inputs from agencies.)