Nissan has announced a new wave of global job cuts and factory closures as the Japanese automaker struggles to stabilize its business amid declining sales and mounting competition. The company revealed plans to eliminate 11,000 positions worldwide and shut down seven manufacturing facilities, bringing its total workforce reduction over the past year to around 20,000 employees. This accounts for roughly 15 percent of Nissan’s global staff, signaling one of the most significant restructuring efforts in its history.
The latest layoffs will primarily affect manufacturing roles, with additional reductions in sales, administration, research, and contract staff, according to CEO Ivan Espinosa. While Nissan has yet to specify which locations will be impacted, concerns loom over its plant in Sunderland, UK, which employs approximately 6,000 workers. These actions follow an earlier announcement in November where Nissan committed to cutting 9,000 jobs and scaling back global production by 20 percent as part of a broader cost-saving strategy.
The restructuring comes after a failed attempt earlier this year to merge with Japanese rivals Honda and Mitsubishi, a plan that aimed to create a $60 billion automotive powerhouse capable of challenging global leaders Toyota, Volkswagen, and Hyundai. With the collapse of those talks, Espinosa, formerly head of motorsports and planning at Nissan, stepped into the CEO role, tasked with steering the company through a turbulent period marked by plummeting demand and intensifying price wars, particularly in China.
Financially, Nissan reported a staggering annual loss of 670 billion yen, or roughly $4.5 billion, driven by weak sales, especially in China and Europe, and compounded by US tariffs introduced under President Donald Trump. Espinosa acknowledged the company is operating in an increasingly “uncertain environment” and described the financial results as a wake-up call. Due to the unpredictable impact of potential new tariffs, Nissan declined to provide profit forecasts for the coming fiscal year, though it expects only modest growth regardless of trade developments.
Compounding its woes, Nissan recently scrapped plans for a new battery and electric vehicle facility in Japan as it reins in investments. The company has been struggling to keep pace with China’s booming domestic automakers like BYD, who have rapidly captured market share in the electric vehicle sector. Meanwhile, higher interest rates and inflation in the US have dampened consumer demand for new vehicles, leading to further setbacks for Nissan in what remains one of its most crucial markets.
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