On the Dash:
- Nissan is cutting 900 jobs in Europe as part of a global turnaround plan.
- The company plans to eliminate 20,000 jobs worldwide by March 2028.
- U.S. dealers should watch for changes to vehicle allocation, incentives, and model availability.
Nissan Motor announced it is making cuts in Europe as part of a broader restructuring plan. The Japanese automaker says it is cutting about 900 jobs across France, Spain, and the UK. The cuts represent about 10% of Nissan’s European workforce. Nissan says the cuts will mostly impact white-collar and warehouse roles. The cuts were first reported by The Financial Times.
“Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes,” a company spokesperson said in a statement sent to CBT News.
Nissan is also streamlining production in the UK. Two production lines at its Sunderland plant in England will be merged into a single line. No production jobs are expected to be impacted. Currently, the Sunderland plant produces the new all-electric LEAF and the electric Juke, which is expected in 2027.
The strategic shifts in Europe are part of CEO Ivan Espinosa’s larger global turnaround plan, which he announced last year. Nissan says it expects to reduce its global workforce by 20,000 jobs by March 2028.
Nissan operates three main manufacturing plants in the United States, located in Smyrna, TN, Decherd, TN, and Canton, MS. Combined, they employ about 20,000 workers.
Last month, the company announced that it no longer plans to build electric vehicles at the Canton plant, canceling a $500 million investment. Instead, the plant will focus on gas-powered truck and SUV production. The shift comes as demand for electric cars slowed in the U.S. following the expiration of the $7,500 federal EV tax credit.
Nissan also announced that it is trimming its global lineup from 56 models to 45. It’s a move Nissan hopes will boost overall U.S. sales, as it aims to reach 1 million annual sales by 2030. As the Japanese automaker tightens global operations and lineup, dealers could see changes to vehicle allocation and incentives.Â
Success will depend heavily on whether a return to gas and hybrid models translates into stronger sales. Key products driving the strategy include the next-generation Rogue hybrid e-POWER and the return of the Xterra as a body-on-frame SUV.
Last week, Nissan raised its earnings outlook for the year. Nissan now expects a full-year operating profit of $314 million. The company had previously forecast a $420 million loss. The company says the removal of U.S. emissions-related charges and favorable foreign-exchange rates improved the outlook.
The company has promised more strategic announcements later this year and is set to publish full-year results on May 13.
