Nissan to Eliminate 20,000 Jobs, Shut Down Seven Plants, and Halt All Projects After 2026
The drastic cuts follow Nissan's announcement of a £3.8 billion net loss for the 2024/25 financial year.
Nissan Plans to Slash 20,000 Jobs, Shut Seven Plants, and Halt Post-2026 Product Development in Major Global Restructuring Effort to Address Significant Financial Losses.
Announced today (13 May), these measures expand on Nissan’s February announcement, where the company revealed plans to cut 9,000 jobs, close three plants, and reduce production by 20%, targeting a production level of five million units annually.
Nissan states that today’s updated figures include the previously announced plans, and they come alongside the confirmation of a £3.8 billion net loss for the 2024/25 financial year.
Nissan President and CEO Ivan Espinosa attributed the significant loss to “rising variable costs, compounded by an uncertain environment,” emphasizing that this new “prudent approach” aims to “return to profitability by fiscal year 2026.”
The carmaker plans to reduce costs by £1.3 billion by 2027. While this goal will be partially met through streamlining its supply chain and implementing “cost efficiencies,” the majority of the savings will come from job cuts and other reductions.
To achieve this, Nissan will reduce its workforce by 20,000 employees between now and April 2027. This total includes the 9,000 job cuts previously confirmed earlier this year.
These cuts will affect manufacturing, administrative, and R\&D roles. Nissan’s CEO, Uchida, previously stated that he would reduce his salary by half, a measure also extended to other top executives.
The company currently employs 133,580 staff worldwide, with approximately 6,000 workers at its Sunderland plant, where it manufactures the Qashqai and Juke models.
The future of the Sunderland plant is uncertain, as Nissan has announced plans to close seven factories by 2027. While the company has not specified which sites will be affected, it did confirm that one of the closures will be the planned battery plant in Kyushu, Japan.
When asked previously, Nissan UK stated that final decisions on where staff reductions will occur or which factories will close had not yet been made, with the possibility of an impact on Sunderland not ruled out. Autocar has requested an updated response from Nissan.
Moreover, all post-2026 product development has been temporarily paused, with 3,000 staff members reassigned to focus on unspecified “cost reduction initiatives,” which are believed to include overhauling the carmaker’s supply chain.
As previously stated, the brand has confirmed its intention to strengthen partnerships with the Renault Group, Mitsubishi, and Honda to streamline operations and reduce costs. One example of this collaboration is the upcoming Nissan Micra, which will be a twin model to the new Renault 5.
Uchida previously stated: “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment.”
