Karmactive Staff
The workers at Nissan got tough news Tuesday – another 11,000 people will lose their jobs as the carmaker struggles with falling sales and rising costs. Add this to the 9,000 cuts from November, and we’re looking at 20,000 Nissan employees heading for the exit door by 2027.
Why such drastic cuts? The money tells the story: Nissan lost a whopping $4.5 billion last year. That’s the kind of number that makes headlines in the auto industry. The company’s operating profit took an 88% nosedive to just 69.8 billion yen ($472 million).
“Our full-year financial results are a wake-up call,” said new CEO Ivan Espinosa. “The reality is very clear. Our variable costs are rising. Our fixed costs are higher than our current revenue can support.”
The Consumer Impact: Automobile, Manufacturing, EV, Battery, Environment, Recall, Electric Vehicles, Safety, Innovation, Nissan
- Seven factories closing, dropping from 17 to 10 plants worldwide
- Production cut from 5 million to 4 million cars yearly
- Fewer model choices as Nissan reduces vehicle platforms from 13 to 7
- Parts inventory streamlined by 70%
- Planned battery factory in Kyushu, Japan? Canceled.
For car buyers, especially in the U.S. and China, the changes hit close to home. Chinese customers turned away from Nissan – sales dropped 12% as local electric car makers gained ground. American shoppers faced high interest rates and inflation, though retail sales showed a small uptick.
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The Plant-by-Plant Plan:
- First closure: Thailand, early 2025
- Two more plants: Gone between October 2025 and March 2027
- Four more locations: Still under wraps
- U.S. plants (Tennessee and Mississippi): Fewer shifts, voluntary buyouts
- UK’s Sunderland plant (6,000 workers): Future unclear, government “engaging closely”
CFO Jeremie Papin stated the company expects a 200 billion yen operating loss in the first quarter. The company aims to achieve 500 billion yen in savings compared to last year through the “Re:Nissan” recovery plan.
Job Cuts Breakdown:
- Manufacturing: Two-thirds of layoffs
- Other cuts: Sales, office staff, research teams
- Total workforce reduction: 15% of Nissan’s 133,500 employees
The company’s adjusting its strategy for different markets too. China gets more electric vehicles, while U.S. buyers will see more hybrids. This comes after merger talks with Honda fell apart in February 2025 – a deal that would have created the fourth largest automaker in the world by vehicle sales.
For workers and consumers, Nissan aims to turn profitable by 2026. But as the numbers show, it’s going to be a challenging period ahead.
