Nissan Motor plans to cut around 20,000 jobs worldwide—more than twice the 9,000 announced in late 2024—as part of a sweeping restructuring effort aimed at reversing declining sales and long-term underperformance. The layoffs would impact approximately 15% of its 130,000 global employees.
NHK and Nikkei report that Nissan's global restructuring is driven by worsening business conditions, especially in North America and China. The expanded layoffs are intended to speed up an operational overhaul and regain financial stability.
Production cuts, stalled merger talks, and scrapped battery plant
In November 2024, Nissan announced it would cut 9,000 jobs and reduce production capacity by 20%, or roughly one million vehicles. The company also entered merger talks with Honda, but negotiations fell apart after Honda reportedly questioned the scale and urgency of Nissan's restructuring plans.
The automaker has closed three plants, including one in Thailand, and is actively downsizing its overcapacity. In Japan, Nissan has also introduced an early retirement program targeting several hundred administrative staff, scheduled for rollout during fiscal 2025.
Sources now confirm Nissan plans to eliminate an additional 11,000 jobs worldwide, raising the total number of layoffs to 20,000 and bringing the workforce reduction to about 15%.
Nissan is also bracing for deep financial losses, projecting a net loss of JPY750 billion (approx. US$5.06 billion) for fiscal 2024. The shortfall stems largely from asset write-downs tied to its plants in Japan and the US.
On May 9, Nissan announced it was abandoning plans to build an EV battery plant in Kitakyushu, dealing a setback to its electric vehicle (EV) strategy.
A GlobalData analysis underscores Nissan's excess capacity: factory utilization rates in 2024 were just 57.7% in the US, 45.3% in China, and 56.7% in Japan, far below the industry's 80% breakeven benchmark. Further job cuts, production line reductions, or plant closures are reportedly under review.
Former CEO Makoto Uchida resigned at the end of March 2025 after the failed merger talks with Honda. He has been replaced by Ivan Espinosa, previously Chief Planning Officer, who now spearheads efforts to stabilize operations and implement broader reforms.
Article edited by Jack Wu
