The crisis in the automotive market, which has been going on for a long time, has left consequences for most manufacturers. One of them is Nissan, which presented a recovery plan that includes laying off a large number of workers. According to company representatives, Nissan plans to lay off more than 20,000 employees in the next two years.

2024 was a bad year for the Japanese company, which sold 3.35 million vehicles worldwide, a slight decrease compared to the previous year (3.37 million vehicles). This contributed to an 88 percent drop in operating profit (472 million) and a net loss of $54.5 billion.

The recovery plan, called Re:Nissan, should bring large financial savings ($3.4 billion), and it is not yet known which regions it will cover. The plan includes the closure of seven of 17 factories and cost optimization in the research and development, marketing, management and production departments.

Last year, Nissan tried to merge with Honda, but the proposal was rejected. Now, Nissan’s new CEO Ivan Espinosa believes that the company needs to change its approach to business and that this year should be a year of transition towards profitability and a better future.

Source: Reuters, Photo: EPA-EFE