Nissan is planning to make significant job cuts, with reports suggesting that 20,000 positions will be eliminated worldwide. This move comes as the company grapples with declining sales and increasing costs. In the UK, the Nissan plant in Sunderland employs about 6,000 people, and last November, the company had already announced it would cut 9,000 jobs globally.
Japanese broadcaster NHK indicated that the number of job losses could more than double from the initial announcement. If true, this would represent a 15% reduction in Nissan’s global workforce. The company has not yet confirmed these reports but is expected to release its full-year financial results soon. Analysts predict a net loss of up to £3.8 billion due to various write-downs on its operations.
The upcoming results will be the first since the appointment of a new CEO last month. There is uncertainty about whether the Sunderland plant will be affected by these job cuts or by potential production reductions of up to 20%. Nissan has previously raised concerns about the plant’s future, especially after Brexit, but has also invested £2 billion in the facility since the beginning of this year. This includes securing UK government funding for a new electric powertrain manufacturing site in Sunderland.
Despite these investments, Nissan executives have warned that more support is needed to keep the UK competitive in car manufacturing. The company, like many in the automotive industry, faces challenges from rising costs and tariffs. For instance, US trade tariffs of 25% on car imports have put additional pressure on Nissan’s supply chain and sales, particularly as the uptake of electric vehicles has not met expectations.
Currently, most Nissan cars produced in the UK are exported to Europe and the domestic market, with Sunderland-made vehicles facing a 10% tariff under the recent UK-US trade deal. However, Nissan does not send cars made in Sunderland to the United States.
As the situation unfolds, many will be watching closely to see how Nissan’s decisions will impact its workforce and operations in the UK and beyond.