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Nissan CEO Makoto Uchida Faces Mounting Pressure Amid Automaker’s Struggles

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Nissan CEO Makoto Uchida is under intense scrutiny as the automaker grapples with declining sales, job cuts, and strategic missteps in its critical markets, including the United States and China. The company, once a leader in electric vehicles (EVs), is now struggling to recover its footing amidst industry-wide disruptions and internal management challenges.

A Crisis in Leadership

In an October meeting with hundreds of Nissan managers, Uchida delivered stark news about the company’s worsening financial position. Weak sales in North America and China were cited as primary factors, alongside the absence of gasoline-electric hybrids in the U.S. market. Nissan’s decision to go “all-in” on EVs in the U.S. left it vulnerable as demand for hybrids surged due to high EV costs and limited charging infrastructure.

Despite being aware of this demand, Nissan delayed adapting its strategy, leading to missed opportunities. The company has sold its e-Power hybrids in Japan since 2016 but will not introduce a plug-in hybrid in the U.S. until March 2026.

“We weren’t able to foresee the rapid rise in demand for hybrids,” Uchida admitted at a November earnings conference, acknowledging management misjudgments.

Restructuring and Cost-Cutting Measures

To address these challenges, Uchida has pledged to cut 9,000 jobs, reduce global production capacity by 20%, and save $2.6 billion in costs. The company has already seen 1,000 U.S. employees accept early retirement and is considering further cuts in Thailand and China, where underutilized factories may be closed.

Nissan’s joint-venture plant in Mexico, COMPAS, is a likely target for downsizing. The facility, shared with Mercedes-Benz, has been operating far below its 230,000-vehicle annual capacity, producing only about 50,000 vehicles.

The Sunderland plant in the UK, however, is expected to remain operational due to recent upgrades. Weakness in the yen has also made Japan a relatively cost-effective manufacturing base, reducing the likelihood of significant cuts there.

Market Challenges and Missed Opportunities

Nissan has struggled to maintain its position in key markets. The company’s market share in China, once a stronghold, has eroded as it failed to keep up with shifting consumer preferences for futuristic-looking hybrids. Similarly, in the U.S., its EV strategy faltered when post-pandemic consumer spending slowed, and hybrids gained popularity.

The Ariya, Nissan’s much-anticipated EV, faced production delays and missed out on a $7,500 U.S. tax credit due to being manufactured in Japan rather than North America.

Nissan’s global sales fell to 3.3 million vehicles in 2022, a 40% decline from 2017 levels. The company’s stock has also plummeted 70% in the last decade, erasing $30 billion in value.

Internal Turmoil and Activist Pressure

Since the 2018 arrest of former chairman Carlos Ghosn, Nissan has been plagued by leadership instability. Uchida is now facing scrutiny from activist investors such as Singapore-based Effissimo Capital Management and Hong Kong’s Oasis Management, who have built stakes in the company.

The CEO has also been criticized internally for his handling of the company’s recovery and strategic direction. Analysts have questioned Nissan’s decision-making for over a year, particularly regarding the lack of hybrids in the U.S. market.

Future Prospects

Nissan is making efforts to pivot. The company plans to launch 34 hybrid and EV models globally by 2030, including a plug-in hybrid for the U.S. by 2026. Additionally, it is exploring partnerships, such as a potential long-term collaboration with Honda on batteries and research.

Despite the challenges, Uchida remains resolute. “I am determined and committed to fulfill my duty as CEO,” he stated during a recent press conference. However, with declining sales, intensifying competition from Tesla and BYD, and increasing scrutiny from stakeholders, the road ahead for both Uchida and Nissan remains uncertain.

Healthcare Products Boost Reckitt’s Q3 Sales Amid Tough Year

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Reckitt reported a smaller-than-expected 0.5% fall in third-quarter underlying sales, outperforming analysts’ forecast of a 1.7% decline. The uptick in sales was driven by the strong performance of its healthcare products, such as Nurofen painkillers and Strepsils lozenges, helping the company regain investor confidence after a challenging year. Shares rose over 3% in early morning trading, with signs of improving volumes welcomed by the market.

The consumer goods group faced setbacks earlier in the year due to an internal investigation in its Middle Eastern business and litigation involving Mead Johnson, its U.S.-based infant nutrition brand. In response, Reckitt announced plans to divest its homecare portfolio by 2025 and focus more on healthcare and hygiene. The company is still considering options for Mead Johnson amid ongoing legal uncertainties.

CEO Kris Licht acknowledged organizational changes could result from the ongoing review, potentially affecting staffing levels. Despite a 14% drop in sales volumes for its nutrition business—due in part to a supply shortage caused by a tornado—the company remains on track to meet its full-year targets. The healthcare segment’s resilience has provided some relief, with price/mix rising 0.9% and overall volumes only declining by 1.4%, better than anticipated.

Analysts view Reckitt’s results as a relief after a difficult period, but concerns over litigation and the potential impacts of restructuring linger.

Meta Fires Employees for Misuse of Meal Allowances on Personal Purchases

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Meta has terminated around two dozen employees from its Los Angeles office for allegedly misusing company-provided meal credits, purchasing items such as acne treatment pads, wine glasses, and laundry detergent, according to a source familiar with the matter. The tech giant confirmed these dismissals after conducting an internal investigation, revealing that some employees used meal vouchers for personal items instead of food. Additionally, some workers reportedly had meals delivered to their homes rather than to the office, violating company policy.

Meta, known for its elaborate in-office dining services at its larger offices, offers meal vouchers to employees working in smaller locations without on-site food services. These credits—$20 for breakfast and $25 for both lunch and dinner—are intended to support staff working long hours at the office by covering meal costs. However, the investigation discovered that certain LA-based employees used the credits for non-food-related purchases or for meals consumed outside of work.

This news comes amid ongoing restructuring efforts at Meta. A Meta spokesperson, Tracy Clayton, acknowledged that the company has been making various organizational changes to align resources with long-term strategic goals. These changes have resulted in shifting some teams to different locations, reallocating employees to different roles, and eliminating positions when necessary. Meta did not disclose the total number of employees affected by these recent layoffs, which spanned across its divisions, including Instagram, WhatsApp, Facebook, and Reality Labs.

One of the more prominent individuals let go was Jane Manchun Wong, a well-known security researcher who had predicted upcoming social media features before joining Meta in June 2023 to work on Instagram and Threads. Wong’s layoff highlights the broader impact of Meta’s restructuring efforts, which follow the company’s more extensive layoffs last year.

In 2022, Meta laid off over 20,000 employees in multiple rounds of cuts, as part of an effort to reverse a period of revenue declines and stagnating user growth. CEO Mark Zuckerberg dubbed it the company’s “year of efficiency.” The company’s shares (META) have rebounded significantly, rising nearly 80% since last year.