Nissan lays off 15% of its global work force amid slipping sales worldwide
Nissan is facing tough times as the Japanese automaker announced plans to cut about 15% of its global workforce, amounting to around 20,000 employees. This decision comes as Nissan reported a loss for the fiscal year that just ended, citing slipping vehicle sales in China and other countries, along with significant restructuring costs. CEO Ivan Espinosa emphasized the need for decisive and bold actions to enhance performance and create a leaner, more resilient business that can quickly adapt to market changes.
As part of its recovery plan, Nissan will reduce its number of auto plants from 17 to 10, with closures expected to include factories in Japan. The company also plans to cut a total of 20,000 jobs by March 2028, including the 9,000 announced last year. Additionally, Nissan will leverage partnerships with Renault SA in Europe and Dongfeng Nissan in China to drive growth.
President Trump’s tariffs on auto imports have also taken a toll on Nissan’s results, contributing to a $4.5 billion loss for the fiscal year. The company aims to reduce costs by $3.4 billion as part of its recovery plan, with a goal of returning to profitability by fiscal year 2026. Chief Financial Officer Jeremie Papin acknowledged the challenges ahead, citing uncertainties surrounding future profit projections.
The Trump administration’s tariffs on imported vehicles have also impacted other automakers, with General Motors and Ford Motors adjusting profit expectations and raising prices on certain models. Toyota estimated a $1.3 billion impact from the tariffs in just two months, highlighting the uncertainty and challenges faced by the industry.
In the midst of these challenges, Nissan is focused on implementing strategic measures to navigate the current market conditions and position itself for future success. The company’s restructuring efforts, cost-cutting initiatives, and partnerships will play a crucial role in shaping its path to recovery. With a clear vision and determined leadership, Nissan aims to overcome obstacles and emerge stronger in the years ahead.
