The automobile industry is going through a rough phase because there are various economic problems which many companies are facing. Nissan, a Japanese automaker company, is trying to solve the issue of cost by reducing its number of employees. Nissan is going to cut more than 10000 jobs in upcoming months worldwide. These additional cut down in jobs came after the company announced in May that it’s going to reduce its employees by 4800. Nissan is not able to perform better from the last few months because the company is booking a shortage of profits. From the previous twelve months, Nissan’s profit went down by more than 44%, which shows the dire situation of the Japanese automobile company.
Nissan is a part of grand alliance Renault-Mitsubishi-Nissan, but because of recent events, this merger also not going well. The executives have denied saying anything about the company’s motive behind this cut of jobs; However, Nissan further predicted a dire situation. The company said there would be approximately more than 28% drop in its profit for the current year. Recently Nissan’s Chairman Carlos Ghosn was arrested for misusing his managerial position. Because of such controversy, Nissan suffered a considerable amount of losses. The automobile industry is going through a tough time because many big companies are diversifying their investments.
Big automobile companies like Ford, GM, Volkswagen are trying to shift their core business to electric vehicles. It’s still unclear about how much this new change is going to solve the current problem of Nissan. Renault owns more than 43% of shares in Nissan, which means this news is going to affect its stock as well. Experts are saying that these new changes were necessary because it would now improve Nissan’s performance. But those employees who are getting fired will have to find some new jobs in the same industry.