HR Restructuring at Nissan

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Nissan's history can be traced back to 1933, when Aikawa Yoshisuke (Aikawa) (1880-1967) established the automobile manufacturing company Jidosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in English) by taking over all the operations for manufacturing Datsun cars from the automobile division of Tobata Casting Co., Ltd... Shock Treatment Carlos Ghosn gave Nissan the much needed shock treatment. In the aftermath of the alliance, he was the one who took ownership of the Nissan turnaround.

Ghosn set a timetable for Nissan within which the company had to recover from its losses. Otherwise, Ghosn said, he would resign. This created a sense of urgency both in him and in everyone else around and helped Nissan to achieve what had earlier been considered impossible...

Ghosn's efforts not only resulted in increased sales growth (Refer Exhibit 3), asset streamlining, and cost-cutting, but they also helped Nissan achieve an increase in market share from 4.6% globally in 1999 to 5.3% in 2003. Nissan also maintained its second position in the domestic market (Refer Exhibit 4)...

Ghosn was not only known as the Cost Killer. He also earned the less than flattering nickname of Employee Killer for the numerous job cuts he did. Approximately 21,500 workers lost their jobs - 4,000 in the production department, 6,000 in sales management, and 6,500 in sales outlets across the country, while 5,000 workers were relocated due to the sale of some businesses...

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