Reuters quoted four people familiar with the matter as saying that Nissan was planning to slash costs in response to an unexpected drop in sales, marking the failure of the expansionist strategy that the company inherited from fugitive former chairman Carlos Ghosn. Nissan plans to cut at least 4,300 more white-collar jobs and close two production plants on top of the 125,000 job cuts announced last July, according to two of them, as part of the company’s plan to increase profits by at least 480 billion yen by 2023.
They say the measures could include cutting Nissan’s model line, cutting jobs at headquarters in the U.S. and Europe, and cutting advertising and marketing budgets.
“It’s a bad situation, it’s a life-or-death decision, ” said one of the people close to Nissan’s top executives. ”
The planned job cuts and efficiency measures were submitted to Nissan’s board in November and were widely accepted, the two sources said.