Nissan is cutting about 15% of its global workforce, equating to roughly 20,000 employees, as the company reported a loss for the fiscal year that just ended. The losses are attributed to declining vehicle sales in China and other regions, as well as high restructuring costs.
The automaker plans to reduce its number of auto plants from 17 to 10 as part of a broader recovery strategy. This move is aimed at creating a leaner, more adaptable business. Nissan has not disclosed which specific plants will close but confirmed that some closures will take place in Japan.
Nissan’s CEO, Ivan Espinosa, acknowledged the tough road ahead, saying, “We have a mountain to climb” and emphasized the need for discipline and teamwork to rebuild the company’s future. This plan follows an operational review to better align production with market demands, and includes utilizing existing partnerships, such as with Renault in Europe and Dongfeng Nissan in China.
Nissan also mentioned that U.S. tariffs on auto imports had negatively impacted its performance. For the fiscal year ending in March, Nissan posted a loss of 670.9 billion yen ($4.5 billion), compared to a profit of 426.6 billion yen in the previous year. The loss for the quarter ending in March reached 676 billion yen ($4.6 billion). As part of the recovery efforts, Nissan aims to cut costs by 500 billion yen ($3.4 billion).
Espinosa stated that Nissan’s new management is taking a cautious approach to reassess targets and seek opportunities for recovery. The company has set a goal of returning to profitability by fiscal year 2026. However, Nissan’s CFO, Jeremie Papin, acknowledged the significant challenges the company faces and did not provide a profit forecast for the fiscal year through March 2026 due to ongoing uncertainties.