Nissan shares slumps after announcing 9 thousand job cuts globally

There has been a sudden decline in the shares of Nissan Motor as soon as there were layoffs. A day after the announcement of layoffs, the company’s shares fell by 6 percent. The Japanese automaker had recently announced the layoff of 9 thousand employees. The company had also announced to reduce its production capacity. The company said it was taking this step due to ongoing losses in sales and high costs in the factory, after which its shares fell.

Japanese automaker Nissan is facing a fall in its shares after the announcement of layoffs. The company had announced layoffs at the global level. The company had talked about removing 9 thousand people from the workforce, after which its shares fell by 6 percent. CNN’s Report According to the company, it is facing huge losses in sales in China and America. Apart from Nissan, many other global automakers are facing losses.

Especially in China, companies are facing losses because here BYD and other domestic companies are giving tough competition to these global players. The reason is that BYD and other Chinese companies are making electric vehicles available in the market at affordable prices. Apart from this, these companies are also making gasoline-electric hybrid vehicles in which advanced software experience is also seen. Similarly, there is a lot of demand for hybrid vehicles in America also. But Nissan is not able to manufacture hybrid vehicles accordingly.

According to company CEO Makoto Uchida, the company did not anticipate that hybrid vehicles would become so popular in America in a short time. Also, demand for revised versions of core models was not as strong as expected. The company is again trying to give a push to its business. The company has yet to fully recover after ousting former chairman Carlos Ghosn in 2018 and cutting its partnership with Renault.