Ghost Of Ghosn? New Nissan CEO Pitches Massive Restructuring That Will Slash 15% Of Global Workforce

Nissan's new CEO, Ivan Espinosa, acknowledges the company's high cost structure and current struggles. His restructuring plan, "Re: Nissan," involves cutting 20,000 jobs and reducing production capacity by a third. Espinosa emphasizes the necessity and painful nature of these reforms to stabilize the company. While similar to Carlos Ghosn's past turnaround, analysts see it as a response to current challenges. Unlike Ghosn's era, Nissan now faces strong Chinese EV competition and a strained relationship with Renault. Analysts see the plan as promising but highlight the need for potential unconventional partnerships. Nissan experienced a significant cash outflow in fiscal 2024, contrasting with a positive cash flow in 1999. Some analysts suggest that Nissan might need to partner with Toyota to use their software platform. The company faces a difficult path forward despite the restructuring efforts.