The automobile manufacturer is set to shed a further 11,000 jobs after 9,000 layoffs were announced last November. Its 17 factories are also to be reduced to 10 by 2027.
The company aims to save ¥500bn (£2.6bn), according to its Re:Nissan plan, published yesterday.
The announcement was made during a news conference at the company's headquarters in Yokohama, Japan.
How can HR leaders support employees during major organisational change?
Not everyone responds to change in the same way, but HR leaders should support employees with honesty, explained Eleanor Tweddell, founder of organisational consultancy Another Door.
She told HR magazine: “It's impossible to support everyone in exactly the way they need. What we can do is keep people informed and anchored.
“Transparency is key. People don’t expect all the answers. But they do need honesty, as far as it can go. Leaders should communicate early, often, and clearly, even when there’s uncertainty. A simple 'We don’t have the full picture yet, but here’s what we do know, and here’s what’s next', builds more trust than silence or overly polished updates.”
Read more: Hiring confidence at a record low, as redundancies rise
Ideally, organisations should build their adaptability before major change happens, added Nick Petschek, EMEA managing director of change management firm Kotter International.
Speaking to HR magazine, he said: “To create systematic adaptability, leaders need to be able to progress in three key areas: management approach, culture, and employee capabilities. Having leadership at every level, a culture of testing and learning where people are encouraged to share ideas and try new things, and continuous learning, can equip employees to be more agile and equipped both from a culture and technical perspective.
“With appropriate training around adaptability – especially in industries that are not historically accustomed to significant shifts – leaders should set the tone and lead the way, moving those three elements forward together.”
During the Nissan news conference, Espinosa said: “In the face of challenging full-year 2024 performance and rising variable costs compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.”
Nissan made a ¥671bn net loss in the fiscal year 2024, according to its financial results. The business expects challenges to come, such as intense competition, forex and inflationary pressure.
Following President Trump’s tariffs, the company is set to “continue prioritising US-built products, optimising local capacity, reallocating tariff-exposed production, and working closely with suppliers to localise and adapt swiftly to market demands,” as stated in its results for the 2024 financial year.
Read more: How to communicate with a team in times of rapid change
HR leaders should also support employees with empathy and compassion during times of business change, Beth Stallwood, founder of coaching consultancy Create WorkJoy, stated.
She told HR magazine: “HR leaders should know that people will not always follow one pattern of behaviour; everybody will respond in their own way. Any threat to job security is a threat to livelihoods, and that’s a scary prospect for employees. HR leaders and managers must meet the employees where they are emotionally and practically. This may mean being prepared for some tough conversations and not throwing false hope or toxic positivity into the situation.
“Training managers on how to have difficult conversations (including when they are part of the change themselves) will also be an important step in the process that is often missed.”
Offering a way for current employees to share how other job losses have made them feel can be useful in supporting them, added organisational consultant, Claudia De Silva.
De Silva told HR magazine: “Morale will be impacted differently depending on the nature of the change. If many jobs are lost during the process, then it may be beneficial to offer an open opportunity for those remaining to discuss how this has impacted them. External consultancy can provide a containing space in the form of group sessions for the remaining employees to share feelings of guilt, loss and anxiety related to the change.
“Being honest and open about how this may impact on a human level and for leaders to share their own vulnerabilities in these areas can also help to improve morale and rebuild trust."
Providing learning and development opportunities for current staff may seem counterintuitive but can be useful, added Steve Wright, managing director of HR consultancy ourHRpeople.
He told HR magazine: "Employees may need new skills and knowledge to adapt to altered roles or responsibilities. This could range from technical skills training for new software to leadership development programs for employees taking on expanded roles. Demonstrating a commitment to equipping employees for success in the new environment can significantly reduce anxiety and boost confidence.
"Reorganisations of this type need careful change management techniques to avoid destroying what the organisation is attempting to achieve for the future. Establishing a dedicated change management team or assigning change champions within different departments can further support the implementation and provide on-the-ground assistance to employees."
