Nissan cuts 20,000 jobs globally as automaker shuts down 7 factories

Nissan, according to media reports of Tuesday, May 13, 2025, is set to shut down seven of its manufacturing plants and cut 20,000 jobs globally after enduring a difficult year.

The move, The Guardian reports, is part of a broader restructuring effort aimed at stabilizing the company’s finances and operations.

Alongside these closures, Nissan plans to eliminate an additional 11,000 jobs, following the earlier announcement of 9,000 job losses in November.

This brings the total workforce reduction to about 15%, impacting employees and contractors across various departments.

The departments include manufacturing, sales, administration, and research and development.

Its Sunderland plant in north-east England, which employs 6,000 people and is the company’s only European factory, is reportedly not among those expected to shut down.

The Japanese automaker is yet to specify which factories will close.

By 2027, Nissan plans to cut the number of its factories worldwide from 17 to 10.

This downsizing is part of a broader cost-cutting initiative aimed at saving 500 billion yen, equivalent to approximately £2.6 billion.

To further reduce expenses, the company also intends to overhaul its supply chain, consolidating its supplier base and sourcing more components from fewer vendors.

Ivan Espinosa, who was recently appointed as Nissan’s chief executive, now faces the formidable challenge of restoring the company’s market position and financial health.

He emphasized that Nissan would shift its focus from chasing high production volumes to prioritizing profitability.

During a press conference, Espinosa noted the difficult environment the company faces, citing the full-year 2024 results, increasing operational costs, and broader global uncertainties.

He explained that the management’s new approach would involve reassessing previous targets and seeking every viable opportunity to ensure a solid recovery.

Espinosa stressed the need for a more urgent and focused effort to improve the company’s internal operations and financial performance.

This supposedly, is particularly in the face of persistent market challenges.

In the fiscal year ending in March, Nissan reported a net loss of 671 billion yen.

This downturn was largely attributed to declining vehicle sales in key markets such as the United States and China, as well as the early effects of trade tensions initiated by former U.S. President Donald Trump.

Compounding its troubles, a potential $60 billion merger with Honda fell through, adding to the company’s instability.

As part of its cost reduction strategy, Nissan plans to lower the average hourly cost of labor by 20%. This will be achieved through measures such as streamlining global research and development facilities and relocating certain operations to more cost-efficient regions. These actions are designed to make the company more competitive and reduce overhead expenses.

In a related development, Nissan’s battery supplier, AESC, recently secured £1 billion in funding to develop a new electric vehicle battery plant in Sunderland.

This facility will become the UK’s second gigafactory and is being supported by the government.

The investment not only secures the future of a key project within the UK automotive industry but also offers some reassurance about Nissan’s ongoing commitment to its operations in Britain.

This is despite its global downsizing efforts.

Overall, Nissan’s restructuring plan reflects a significant shift in strategy, moving away from aggressive expansion toward financial sustainability.

With sweeping job cuts, factory closures, and a streamlined supply chain, the company aims to regain stability and return to profitability.

Espinosa’s leadership marks a new chapter for the automaker, one focused on internal efficiency, prudent management, and adapting to a volatile global market.

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