Nissan Motor India has begun the first phase of culling jobs after Renault Group acquired 51% of Nissan’s manufacturing department, Renault Nissan Automotive India Pvt Ltd (RNAIPL), last month. According to a report by Economic Times, the non-core operations at Renault Nissan Technology & Business Centre India (RNTBCI) have been cut, and the Japanese automobile company will be transferring to two of its partners, Accenture and Genpact.
Based on an internal report that ET has come across, the IS/IT staff will be transferred to Accenture, while those in finance and HR will be shifted to Genpact. The entire process is expected to be finalised by mid-June, and the memo was sent to the employees by Massimiliano Messina, senior vice president, Finance and Information Technology.
Nissan has responded to this development and has officially stated, “As we are transforming our company to improve our competitiveness and meet the challenges ahead in the most optimal way, we have reviewed the operations of our non-core activities and have concluded that changes are needed to improve our processes. As a result, we informed Renault about our decision to externalize some of our current non-core activities and processes at RNTBCI: GBS Nissan SSC, in Chennai (India). Under this initiative, we can confirm we have partnered with external strategic partners: Genpact & Accenture; to which some of the RNTBCI activities will be transferred. This process is currently still ongoing and further details will be announced in due course. There are no further changes to our business organization to announce at this time. We can confirm there will be no job losses as a result of this project.”
What does this move mean for Nissan?
This strategic move by Nissan is part of the Japanese automaker’s global restructuring plan aimed at improving profitability amid challenging market conditions. According to the ET report, Messina explained that these measures are designed to enhance efficiency rather than outright layoffs, with affected employees being offered comparable roles at Accenture and Genpact.
The restructuring aligns with Nissan’s global Nissan Next transformation plan, which seeks to cut $2.8 billion in annual costs by rationalising production, reducing headcount, and focusing on core markets. India remains a key market for Nissan, particularly with its alliance partner Renault, but the company has been scaling back non-essential investments to prioritise high-growth segments like SUVs and electric vehicles.
What’s next for Nissan?
Nissan recently announced that it is focused on the Indian market and will be rolling out two new products, starting with an affordable three-row MPV and a mid-size SUV. The 7-seater MPV will make its world debut in FY25 while the 5-seater SUV will break cover in early FY26. The company has confirmed that it will launch four products in FY26.
