Nissan Motor Co. has announced a sweeping global restructuring plan that includes shutting down seven factories and cutting approximately 20,000 jobs—about 15% of its global workforce—as the Japanese automaker grapples with deepening financial losses and declining sales in key markets.
Global Factory Closures and Workforce Reductions
The company plans to reduce its number of manufacturing plants from 17 to 10 by 2027, as part of efforts to streamline operations and cut costs. While specific details about the locations of the seven factories slated for closure have not been disclosed, the restructuring is expected to impact facilities across various regions. This move follows an earlier announcement in November 2024, where Nissan revealed plans to cut 9,000 jobs and reduce global production capacity by 20%.
The latest round of job cuts adds 11,000 positions to the previously announced reductions, bringing the total to nearly 20,000 jobs eliminated within a year. This significant downsizing reflects the company’s urgent need to address its financial challenges and adapt to shifting market dynamics.
Financial Struggles and Market Challenges
Nissan’s decision comes amid a projected record net loss of up to ¥750 billion (approximately $5.3 billion) for the fiscal year ending in March 2025. The losses are attributed to higher-than-anticipated restructuring and asset impairment costs, declining vehicle sales, and financial strain from U.S. tariffs on foreign-made cars.
The automaker has faced significant challenges in key markets, particularly in China, where its market share has halved over the past four years. Nissan’s struggles have been exacerbated by slow adoption of electric vehicle technology, leaving it trailing behind more agile Chinese brands like BYD, Chery, and Geely.
Abandonment of EV Battery Plant Project
In a related development, Nissan has abandoned its plan to build a $1.1 billion electric vehicle battery factory in Kitakyushu, southwestern Japan. The project, which was expected to create approximately 500 jobs and begin operations around July 2028, was scrapped as part of the company’s reevaluation of its investment strategies amid ongoing restructuring efforts.
Leadership and Strategic Outlook
Under the leadership of newly appointed CEO Ivan Espinosa, who assumed the role on April 1, 2025, Nissan is undertaking a comprehensive review of its operations and investment strategies. The company aims to improve performance and operational resilience through cost-cutting measures, including job reductions, facility closures, and the cancellation of planned projects.
As Nissan navigates these challenging times, the company is expected to release its full-year financial results and additional recovery actions in the coming days. The automotive industry and stakeholders will be closely monitoring Nissan’s efforts to stabilize its operations and chart a path toward sustainable growth.
