Japanese automaker Nissan has announced a sweeping global restructuring plan that includes cutting an additional 11,000 jobs and shutting down seven manufacturing plants. The decision comes in response to mounting financial pressure caused by declining sales in key markets, intensified competition, and the collapse of a proposed merger with rival firms. This latest round of layoffs brings Nissan’s total job cuts to approximately 20,000 over the past year, representing nearly 15 percent of its global workforce.
The company currently employs around 133,500 people worldwide. Two-thirds of the new cuts will target manufacturing roles, while the remainder will affect positions in sales, administration, research, and among contract staff. Nissan has been particularly affected by slumping sales in China and aggressive discounting strategies in the United States, which have significantly eroded profit margins. The company recently reported an annual loss of 670 billion yen, equivalent to roughly $4.5 billion.
Additionally, operating profit has plummeted 88 percent year-on-year, with projections indicating a 200 billion yen operating loss in the first quarter alone. Company executives pointed to past strategic missteps, particularly under former chairman Carlos Ghosn, who emphasized market share over product innovation. Analysts say this approach left Nissan vulnerable to a wave of new competitors, especially in the electric vehicle market where Chinese automakers have surged ahead.
Efforts to forge a merger with Honda and Mitsubishi fell apart earlier this year, eliminating a potential path to scale and shared development costs. Chief Executive Ivan Espinosa, who replaced Makoto Uchida earlier this year, described the financial results as a wake-up call and emphasized the need for immediate structural changes. The restructuring plan aims to deliver cost savings of nearly 500 billion yen. However, Nissan has yet to disclose the specific locations of the plant closures or where the job cuts will be concentrated.
In the United States, where Nissan operates several key facilities, there is growing concern among employees. The company’s plant in Smyrna, Tennessee, which employs more than 5,700 workers, is reportedly under review, though no closure has been confirmed. Nissan had previously signaled plans to increase production at the facility, which is its largest manufacturing site in North America. As part of its broader turnaround strategy, Nissan also announced it would reduce the complexity of its vehicle components by 70 percent.
This move is expected to improve efficiency and potentially shift more production closer to key markets to mitigate the impact of fluctuating trade tariffs. The outlook remains uncertain as global economic conditions, rising costs, and evolving trade policies continue to weigh heavily on the automotive industry. Nissan has not issued a financial forecast for the upcoming year, citing the unpredictable nature of international trade measures and ongoing market volatility. – By MENA Newswire News Desk.
