One of the largest automakers in the world, the Japanese company Nissan Motor Co., Ltd plans to cut about 10% of its workforce in Europe as part of a restructuring program.
Every Tenth – Out
The company has already begun negotiations with employees about laying off around 900 office workers in Europe, including France, Spain, and the United Kingdom. Currently, about 9,300 people are employed in the region.
At the same time, the automaker intends to merge two production lines at the Sunderland plant (UK) into one.
The company is also considering engaging external partners to utilize the plant's idle capacity, which is currently operating at about 50%. According to FT, among the potential partners is the Chinese automaker Chery Automobile.
Why This Is Necessary
According to Nissan's statement, these measures are necessary to ensure the long-term sustainability of the business in Europe, preserve jobs, and enhance competitiveness.
However, no layoffs are planned at the Sunderland plant. About 6,000 employees work there, producing the Nissan Leaf electric vehicle, and starting in 2027, the production of a new Juke crossover model is planned. The company also plans to scale back the operations of its warehouse division in Barcelona and reorganize logistics operations in Northern European countries.
The Chinese Are Pushing Out the Japanese
The restructuring comes amid pressure on Nissan from Chinese automakers.
According to industry associations, the company's sales in the UK fell by 13% in the first four months of the year, while its market share dropped from 4.7% to 3.7%. In the EU, sales fell by 8.3% in the first quarter.
At the same time, the market share of Chinese brands is growing: Chery holds about 6%, while BYD has about 3.5%.
