Nissan Cuts 11,000 Jobs & Closes 7 Plants In Major Global Restructuring

Nissan unveils major restructuring plan with plant closures and job cuts

Nissan Motor Co. has announced a sweeping restructuring plan, which includes the closure of seven manufacturing plants and the elimination of an additional 11,000 jobs globally. The move comes as the automaker grapples with falling profits, declining global sales and increasing pressure from both competitors and economic headwinds.

The latest cuts bring the total number of job reductions to approximately 20,000, following an earlier decision to cut 9000 positions. The company also plans to consolidate its global manufacturing footprint by reducing its number of production facilities from 17 to 10. In an effort to boost efficiency, Nissan will also simplify its supply chain by cutting the number of parts it uses by 70%.

Newly appointed CEO Ivan Espinosa, who stepped into the role amid ongoing turmoil, described the past year as a “wake-up call” for the company. Speaking at a press conference, Espinosa emphasised that rising costs and stagnant revenue had left the company with no choice but to make significant changes. He outlined a cost-cutting target of approximately 500 billion yen as part of Nissan’s path toward financial recovery.

For the fiscal year ending in March, Nissan reported an operating profit of 69.8 billion yen (roughly $472 million), an 88% drop from the previous year. The company has declined to issue forecasts for the current financial year, but it expects to post a substantial operating loss of 200 billion yen in the first quarter, according to Chief Financial Officer Jeremie Papin.

The challenges facing Nissan are multifaceted. Sales have weakened notably in key markets such as the United States and China, while stalled merger talks with Honda further complicated its strategic direction. The automaker is also contending with external pressures such as tariffs in the U.S. and heightened competition from rapidly growing Chinese electric vehicle manufacturers.

Industry analysts have pointed to Nissan’s historic overemphasis on sales volume and discount-driven strategies during the leadership of former chairman Carlos Ghosn as contributing factors to the company’s current predicament. These practices, they say, have left Nissan with a dated product lineup and eroded brand value.

While the restructuring plan marks one of the most significant overhauls in Nissan’s recent history, the road to recovery is expected to be long and complex. Espinosa acknowledged the scale of the challenge but said the company is committed to rebuilding its operational and financial foundation.