Nissan Motor Co. announced a sweeping restructuring plan that includes slashing approximately 20,000 jobs—about 15% of its global workforce—and reducing its number of manufacturing plants from 17 to 10, following a significant financial downturn in fiscal year 2024.
The Yokohama-based automaker reported a $4.5 billion net loss for the year ending March 31, a sharp reversal from a $2.9 billion profit the previous fiscal year. For the fourth quarter alone, losses totaled $4.6 billion.
“This is about decisive and bold actions to enhance performance and create a leaner, more resilient business,” said Nissan CEO Ivan Espinosa during a press briefing. “Starting today, we build the future for Nissan.”
The company confirmed the plant closures will include some facilities in Japan but did not disclose specific locations. The announced headcount reduction includes 9,000 previously announced job cuts and will be completed by March 2028.
Nissan’s recovery plan also aims to cut operating costs by $3.4 billion by aligning production with global demand and strengthening strategic alliances, such as its partnerships with Renault in Europe and Dongfeng in China.
“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” Espinosa said, adding that all employees are committed to returning the company to profitability by fiscal year 2026.
The company also cited external challenges including declining vehicle sales in China and other markets, the canceled development of a battery plant in Japan, and the impact of U.S. auto import tariffs on its performance.
CFO Jeremie Papin acknowledged the seriousness of the situation and said that due to economic uncertainty, Nissan would not provide a profit forecast for the fiscal year ending March 2026.
Despite the obstacles, Espinosa emphasized discipline and teamwork as central to the company’s turnaround strategy: “We have a mountain to climb.”
