Nissan has announced significant operational changes, including a reduction of approximately 15% of its global workforce, equating to around 20,000 jobs. This drastic measure follows a reported loss for the recent fiscal year, attributed to declining vehicle sales in markets like China, along with high restructuring expenses.
Under a new recovery plan, Nissan intends to decrease its number of auto plants from 17 to 10 as part of what it describes as “decisive and bold actions” aimed at improving performance and establishing a more agile business model. Although specific plant closures have not been detailed, Nissan confirmed that Japanese factories will be affected.
Chief Executive Ivan Espinosa, who took over earlier this year, emphasized the challenges ahead, stating, “We have a mountain to climb” and underscoring the need for discipline and teamwork in their efforts to shape Nissan’s future. The workforce reductions, which also build on a previous announcement to cut 9,000 jobs, are expected to be implemented by March 2028. Nissan had also scrapped plans to construct a battery plant in Japan as part of its restructuring.
Espinosa highlighted that the company’s strategy involves realigning production with market demand and enhancing product strategies, leveraging key partnerships, particularly with Renault in Europe and Dongfeng Nissan in China. He also indicated that U.S. trade tariffs have negatively impacted their financial results.
For the fiscal year ending in March, Nissan reported a loss of 670.9 billion yen (approximately $4.5 billion), a stark decline from a profit of 426.6 billion yen the previous year. The latest quarter posted an additional loss of 676 billion yen ($4.6 billion).
The automaker is aiming to reduce costs by 500 billion yen ($3.4 billion) and is committed to returning to profitability by the fiscal year 2026. Still, Chief Financial Officer Jeremie Papin recognized the considerable uncertainties and challenges that lie ahead, refraining from issuing specific profit projections.
Amid these difficulties, Nissan’s focus on recovery and the commitment from management and employees to work collaboratively offers a glimmer of hope for the company’s future resilience.