StartupTalky

Tag: nissan

  • Nissan to Slash 11,000 Jobs and Shut 7 Plants in Major Restructuring

    After a turbulent year that left the Japanese automaker struggling to turn itself around, Nissan Motor announced massive fresh cost cutbacks on 13 May, announcing the closure of seven sites and the elimination of 11,000 further positions.

    Nissan nearly lost its profit in the most recent fiscal year after delaying the release of projections for the one that was just beginning. In the 12 months ending in March, operating profit was 69.8 billion yen ($472 million), which was 88% less than the previous year.

    After declining sales in China and the United States, the automaker’s merger negotiations with Honda broke down, and it was recently compelled to replace its CEO.

     Similar to competitors, it is under pressure from U.S. tariffs and faces competition from rapidly expanding Chinese EV manufacturers in Southeast Asian and international markets.

    Difficult Time Ahead for New CEO

    Ivan Espinosa, the company’s new CEO, wants to save about 500 billion yen in overall expenses. However, he has the challenging task of reviving a carmaker whose once-dominant brand value has been diminished.

    The company’s full-year financial figures are a wake-up call, Espinosa said during a news event. The facts are crystal clear. Variable costs for the company are increasing. The brand’s existing revenue is insufficient to cover its fixed costs.

    With the further layoffs, Nissan would have reduced its staff to about 20,000 employees overall. The company had previously stated that it would eliminate 9,000 jobs.

    It will reduce part complexity by 70% and reduce the number of its production plants from 17 to 10. It did not specify which plants it anticipated closing.

    Analyst Predicted the Current Move

    According to analysts, Nissan is currently experiencing the consequences of its excessive emphasis on sales volume and the implementation of substantial discounts to maintain inventory turnover.

     It is currently rushing to upgrade its aged lineup as a result. However, a quick recovery is doubtful, as the carmaker reported an operational loss of 200 billion yen in the first quarter, according to CFO Jeremie Papin.

    Layoff has Become a Common Scenario in 2025

    With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

    Companies are still laying off employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

    Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

    According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.

  • Renault to Acquire Full Control of India Operations: A Major Shift in the Renault-Nissan Alliance

    The French automotive giant Renault announced that it has acquired Nissan’s 51% stake in a joint venture called Renault Nissan Automotive India Private Limited (RNAIPL).

    The company’s operations in India now fall completely under the control of Renault, which makes the RNAIPL a Renault subsidiary that is wholly owned. The move was not said to involve money, but it shows Renault is dead serious about hanging around in the fast-growing Indian automotive market.

    Nissan’s Continued Role in India

    Even though Renault is fully in command of the venture, Nissan contends that it remains a beneficiary of the manufacturing infrastructure in India. The Japanese automaker will still have Renault assemble not just existing models but also forthcoming ones for it. These cars, which will be sold in both the Indian and export markets, are supposed to be in production for as long as it takes to get them through the product life cycle.

    Plans for Expansion and Growth

    Nissan has set its sights high for the Indian market. The automaker is readying itself to roll out six new models by 2026, in an effort to inflate its domestic sales to 100,000 units annually, on top of another 100,000 units it wants to ship overseas. Nissan’s present-day lineup features strong sellers like the Magnite and the X-Trail, and the company appears to be doubling down on its SUV strategy, with plans to introduce an even broader selection of body styles going forward.

    Frank Torres, president of Nissan India Operations, made it clear that the company is fully committed to the Indian market. He said that the company is not planning to exit the country but is actually focused on expanding its vehicle offerings and improving local sales.

    Future Collaborations and Developments

    Even though Renault has assumed command of the production facilities in India, the two automakers will still work together on a number of initiatives. They will uphold their 51:49 ownership arrangement in the Renault Nissan Technology & Business Center India (RNTBCI). Moreover, Renault will create a fresh A-segment vehicle for Nissan, using the soon-to-be-introduced Renault Twingo as the platform. That project will be handled by Renault’s electric vehicle division, Ampere, and is scheduled to kick off in 2026.

    Moreover, the firms have updated their cross-shareholding contracts, cutting back the lock-up commitment from 15% to 10%. That makes it easier for both sides of the alliance to manage what constitutes their equity stake.

    A New Chapter for Renault and Nissan in India

    Acquiring Nissan’s stake in RNAIPL marks a significant shift in the dynamics of the Renault-Nissan alliance. With this acquisition, Renault is setting itself up for long-term success in the Indian market and is deepening its steps into the international sphere. Meanwhile, Nissan will continue to benefit from the established manufacturing infrastructure and is set to pump in new models into the Indian market too. So, all in all, both Renault and Nissan seem very much committed to operations in the subcontinent—with a renewed focus on ramping up local production, expanding product portfolios, and serving the burgeoning Indian automotive market.