Nissan cuts workforce to save $4.5 billion amid financial struggles

In Japan, Nissan Motor Corp., a renowned but struggling automaker, is undergoing significant changes as it focuses on a financial turnaround. The company has reported a staggering $4.5 billion loss for the fiscal year ending in March, which has led to pressing decisions to restore profitability. To address these challenges, Nissan strategically aims to enhance cost-efficiency, reinforce business partnerships, and redefine its vehicle lineup, with particular emphasis on their latest technology, e-Power. The new hybrid system, which combines an electric motor with a gasoline engine, represents a significant shift in Nissan's approach, aiming to compete more effectively in the lucrative North American market. Nissan's e-Power technology stands out by always operating on electric power, freeing owners from the obligation of frequent charging, unlike traditional electric vehicles. Although this technological innovation has seen some initial success in Europe and Japan, it faces challenges in the U.S. market, largely influenced by President Donald Trump’s tariff policies. Moreover, Nissan's ambitious plan includes cutting about 20,000 jobs, representing a 15% reduction in its global workforce, and reducing its global production sites from 17 to 10. The automotive giant's leadership, under new Chief Executive Ivan Espinosa, is putting the spotlight on innovative technologies to revive the brand. Nissan is not only focusing on e-Power but is also looking into solid-state batteries, aiming to replace the widely used lithium-ion batteries in their electric and hybrid models. This forward-thinking approach highlights Nissan's commitment to remaining competitive and relevant in the rapidly evolving automotive landscape. However, the company's future remains uncertain. Industry analysts express concern over Nissan potentially running out of cash and needing a strategic partner to stabilize its operations. Speculation is growing around drastic measures, including possible sales of its headquarters or transforming plants into different ventures altogether. The automaker had earlier pursued talks with Honda Motor Co. for possible business integration but decided against further negotiations in February, leaving many questioning the feasibility of its ambitious recovery plan.