Nissan Motor Corporation announced it plans to simplify its management structure from the start of the 2025 fiscal year, which begins next month, resulting in a 21% reduction in the number of top executives to 33, from 42 currently. The struggling Japanese automaker is looking to cut costs and improve operational efficiency, as it faces rising global competition from Chinese automakers.
Nissan confirmed that it will “transition” its top management structure to a single-layer, streamlined and borderless organization from the start of April, when the company’s new CEO Ivan Espinosa takes office. As part of the restructuring, all corporate officers will assume the title of Corporate Executive (CE).
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Nissan said in a statement: “This is also part of Nissan’s commitment to improving decision-making efficiency by simplifying organizational layers and expanding the span of control. These changes are designed to empower regions and establish clear roles and responsibilities within the organization.”
The automaker reported a 98% plunge in net profits in the first nine months for the current fiscal year, between April and December 2024, while incurring a net loss in the third quarter. This reflected slow demand for its products in some key markets around the world and a weak pricing environment.
