Nissan announced Tuesday it will cut an additional 11,000 jobs and shut down seven factories globally, as the struggling Japanese automaker attempts to rebound from one of its worst financial years in over a decade.
The aggressive cost-cutting plan caps a turbulent year for Nissan, marked by plunging sales, failed merger talks with Honda, a leadership shakeup, and mounting pressure from global rivals and economic headwinds. The company aims to save 500 billion yen ($3.4 billion) through the restructuring.
“Our full-year financial results are a wake-up call,” said new CEO Ivan Espinosa during a press conference at Nissan’s Yokohama headquarters. “The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support.”
Nissan reported an operating profit of 69.8 billion yen ($472 million) for the fiscal year ending March 2025, down 88% from the prior year. It declined to provide financial guidance for the year ahead, signaling continued uncertainty as it navigates a complex turnaround.
The latest job reductions bring Nissan’s total workforce cuts to around 20,000, following a previously announced reduction of 9,000 positions. The company will reduce its global plant count from 17 to 10 and simplify vehicle parts by 70%, though it did not identify which facilities will close.
Moreover, the company has been hit hard by slumping sales in the U.S. and China, while also contending with U.S. tariffs and intensifying competition from low-cost Chinese EV manufacturers in Southeast Asia. Analysts say Nissan is also dealing with the lingering effects of former Chairman Carlos Ghosn’s focus on sales volume and incentives, which left the company with an aging product lineup and declining brand value.
Despite the overhaul, Nissan’s financial outlook remains bleak. CFO Jeremie Papin projected a 200 billion yen operating loss for the first quarter of the new fiscal year.
Espinosa now faces the challenge of rebuilding Nissan’s competitiveness amid rising costs and shifting industry dynamics—without a quick turnaround in sight.
