Nissan is set to close seven of its global factories and cut 20,000 jobs as it reels from an annual loss of ¥671 billion (£3.4 billion/$4.3 billion). The sweeping overhaul, announced Tuesday, is the automaker’s most drastic move yet to claw back profitability after a bruising year of collapsed merger talks, plummeting U.S. and Chinese sales, and rising production costs.
The move will shrink Nissan’s manufacturing footprint from 17 plants to just 10 by 2027 and reduce its global workforce by 15%. Of the 20,000 roles being eliminated, 11,000 are new cuts added to the 9,000 layoffs announced in November 2024. Affected roles include factory workers, sales staff, R&D personnel, and back-office teams.
No details were given on the specific sites to be shut down. However, Nissan’s Sunderland plant in northeast England, its only European factory, employing 6,000 people, is not currently believed to be at risk.
The restructuring is projected to save the company ¥500 billion (£2.6 billion/$3.3 billion). Nissan will also streamline its supply chain by relying on fewer parts suppliers to drive down costs and increase efficiency.
Ivan Espinosa, Nissan’s new chief executive, appointed just last month, pledged to steer the company back to financial stability by shifting focus from sales volume to sustainable profits.
“In the face of challenging 2024 results and rising variable costs, we must act with urgency and discipline,” Espinosa said. “We’re reassessing all targets and prioritizing recovery grounded in long-term profitability.”
Nissan’s sharp ¥671 billion net loss for the year ending March 2025 marks one of the worst in its history. The automaker has struggled amid slowing demand in two of its largest markets—the United States and China—and early fallout from the U.S. trade war reignited under the second Trump administration.
Further pressure came from the collapse of a proposed $60 billion merger with Honda earlier this year. The deal, once seen as a pathway to survival for both firms, would have created one of the world’s largest automotive groups.
Espinosa now faces the monumental task of rebuilding brand confidence while navigating supply chain disruptions, electric vehicle transitions, and geopolitical uncertainty. Analysts say the company’s future will hinge on its ability to innovate and regain consumer trust in its core markets.
Despite the turmoil, Espinosa insists Nissan will emerge leaner and more resilient.
“This is not just cost-cutting. It’s a strategic reset,” he said. “We’re building a Nissan that wins not through size, but strength.”
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