Nissan to Slash 20,000 Jobs Globally Amid Major Restructuring Push
Automaker Targets 20% Reduction In Production Capacity By 2026 As Losses Mount
Nissan Motor Co. has announced Job cuts to eliminate approximately 20,000 positions worldwide—roughly 15% of its workforce—as part of an ongoing effort to reduce costs and improve operational efficiency amid declining sales in key markets.
The latest round of cuts includes more than 10,000 jobs beyond the 9,000 already scheduled for elimination, according to Japanese public broadcaster NHK. These workforce reductions are expected to affect manufacturing plants, administrative functions, and support roles across multiple regions, with a significant share occurring outside Japan.
Restructuring Linked to Poor Performance in U.S. and China
The United States and China are Nissan’s two largest markets. However, in the U.S., the company has struggled to maintain competitive sales volumes, particularly as consumer preferences have shifted toward hybrid vehicles.
Despite being an early entrant in the electric vehicle (EV) market, Nissan was unable to maintain momentum, falling behind competitors who scaled up hybrid offerings more effectively.
Nissan’s market share in china is shrinking. The automaker is planning to introduce 10 new models in the region over the next few years, but the sales downturn has already prompted significant cost-cutting measures.
The restructuring includes the closure of Nissan’s plant in Thailand by June 2025 and the planned shutdown of two additional facilities that have not been officially named.
The company is also reportedly reviewing the future of one of its five domestic vehicle assembly plants in Japan. Any closure of a domestic facility is likely to face opposition from labor unions and local governments.
In addition, Nissan has canceled plans to construct a $1.1 billion electric vehicle battery factory in Japan’s Kyushu region. The project had been announced in coordination with local authorities but has now been scrapped as the company re-evaluates its capital expenditure plans.
Leadership Transition and Strategic Review
The company is undergoing leadership changes, with Ivan Espinosa taking over as CEO in April 2025. Espinosa has indicated a renewed focus on cost control and product alignment with market trends.
The restructuring measures are part of a broader strategic review intended to streamline global operations and reverse prolonged underperformance.
As part of its revised strategy, Nissan aims to scale back its worldwide production capacity by 20% by the end of fiscal year 2026. This move follows several cuts to its profit outlook over recent quarters.
In April, the company projected an unprecedented annual net loss ranging from 700 billion to 750 billion yen—equivalent to roughly $4.74 to $5.08 billion—for the fiscal year that closed in March 2025.
The layoffs and plant closures are expected to have a cascading impact on Nissan’s supply chain and local economies. In Thailand, for instance, local automotive parts manufacturers are adjusting production plans due to the closure of the Samut Prakan plant.
One medium-sized supplier that provided gearbox components to the facility is reportedly shifting to produce parts for appliances in anticipation of reduced automotive orders.
Although these supply chain adjustments are standard during large-scale corporate restructurings, they indicate broader market implications beyond direct Nissan employees.
Future Outlook
Nissan has not disclosed the geographic distribution of the job cuts, but analysts anticipate a heavier concentration in overseas markets where sales have been weakest. The company has stated that it will continue reviewing its global footprint to optimize resources in line with evolving demand.
While Nissan has not provided a detailed timeline for the completion of the layoffs, it is expected that the majority will take place over the next 12 to 24 months, aligning with its revised operational targets.
As the company prepares to release its full-year financial results, stakeholders will be closely watching for further clarification on product development priorities, cost reduction strategies, and recovery efforts in key markets.
