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Automotive company from Japan
Nissan
will terminate employment (
Layoffs
) to 15 percent of its workers.
The decision saw 87 positions eliminated in the company’s European regional office in France.
Quote
Reuters
, Thursday (13/11), this step is part of CEO Ivan Espinosa’s global restructuring and recovery efforts.
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According to Nissan documents, most of the positions that will be eliminated are in marketing and sales.
Of the 87 positions, 64 of them are still filled.This means that 23 positions have been vacant for a long time.
Even so, the company still opened 34 new positions and provided opportunities for 64 previous positions to move to new positions.
This means that the number of layoffs (PHK) will likely decrease with this opportunity.
Nissan provides a severance bonus for employees who choose internal transfers of US$5,830 or the equivalent of Rp. 97,395,980 (assuming an exchange rate of Rp. 16,710 per US dollar).
Meanwhile, employees who choose to look for work outside the company will be supported by agents for reassignment and offered reassignment leave of up to two years adjusted to their age.
Currently, Nissan employs approximately 570 people in its Montigny-le-Bretonneux, France office tasked with overseeing operations in Europe, Africa, the Middle East, India and Oceania.
Nissan confirmed that management in Europe and employee representatives had reached an agreement.Additionally, the company has also announced changes to its organization.
“This decision was driven by the need to reflect the realities of the current business environment and address specific challenges at Nissan,” management said.
Apart from that, Nissan also said that the restructuring carried out included simplifying roles and eliminating layers of management in order to increase efficiency throughout the company.
As for the same Nissan company document, the cuts are regulated in an October 16 agreement with labor union representatives and will be implemented in stages, starting with a voluntary layoff program.
If voluntary layoffs are not sufficient, forced layoffs will begin in early February.
In a meeting with employees on Wednesday (12/11), Nissan’s European Regional Chairman Massimiliano Messina emphasized speeding up and streamlining operations.
“This is not just about cutting costs,” said Messina, quoted by Reuters.
Messina emphasized that the Montigny office is “so vital” that it will continue to invest in employee development.
According to a diversity report in October 2024, the Japanese automaker employs nearly 19 thousand people in Europe, Africa, the Middle East, India and Oceania, with about 60 percent in Europe.
Currently, the car manufacturer is facing tough competition in the European market so it is trying to simplify operations and return to profit.
Meanwhile, Espinosa also carried out restructuring in the form of cutting Nissan Motor’s global production capacity by almost 30 percent to 2.5 million vehicles and reducing the number of factories from 17 to 10.
Last week, Nissan reported its retail sales in Europe fell 8 percent in the first half of the fiscal year.
Furthermore, the company also cut its annual regional forecast by 3 percent to 340,000 vehicles, although it expects recovery through upcoming product launches and programs
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