Nissan to cut 20,000 employees and seven plants globally amidst record loss

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery,” said Nissan president and CEO.

Japanese carmaker Nissan has announced a recovery plan in response to a record loss in fiscal year (FY) 2024. This plan includes laying off a total of 20,000 employees and shutting down seven plants worldwide by FY 2027.

In a press release issued on 13 May 2025, the company stated that it will cut an additional 11,000 jobs between FY 2024 and 2027, on top of the previously announced reduction of 9,000 in November, bringing the total number of staff cuts to 20,000.

This global workforce reduction will affect both direct and indirect roles, as well as contractual positions in manufacturing, selling general and administrative (SG&A), and R&D functions.

Additionally, Nissan will implement further measures under SG&A, including expanding the scope of shared services and identifying efficiencies in marketing.

On the manufacturing and development front, the company will consolidate its vehicle production plants from 17 to 10 by FY 2027. It will also streamline its powertrain plants, and accelerate job reformation, work shift adjustments, and capital expenditure reductions, including the cancellation of the planned Lithium Iron Phosphate battery plant in Kyushu.

Various initiatives, such as rationalising global R&D facilities and allocating work to competitive locations, will also be adopted to reduce the average cost of the workforce per hour by 20%.

These measures are part of the company’s recovery plan, dubbed ‘Re:Nissan’, which aims to achieve total cost savings of ¥500bn and secure positive operating profitability and free cash flow in the automotive business by FY 2026.

"In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume,” said Nissan president and CEO Ivan Espinosa in the statement.

“As new management, we are taking a prudent approach to reassess our targets and actively seek every possible opportunity to implement and ensure a robust recovery. Re:Nissan is an action-based recovery plan clearly outlines what we need to do now. All employees are committed to working together as a team to implement this plan, with the goal of returning to profitability by fiscal year 2026."

The automobile manufacturer has earlier released its financial results for FY 2024, reporting a net loss of ¥670.9bn, the worst since FY 1999 according to Bloomberg.

Meanwhile, both free cash flow and operating profit in the automotive business were negative for the full year, respectively at ¥242.8bn and ¥215.9bn.

To address its severe financial situation, Nissan has attempted to explore the possibility of business integration with Honda and tripartite collaboration with Mitsubishi Motors last year, but had failed to do so. The company then made significant changes to its senior management by introducing a renewed leadership line-up earlier this year, including the appointment of Espinosa as part of its turnaround plans.

Looking ahead to FY 2025, the company expects the business to remain challenging due to intense competition, foreign exchange and inflationary pressure, as well as uncertainty related to U.S. tariff policy.

According to the company's profile, Nissan currently has 133,580 employees around the world.

Photo / Nissan