Nissan Motor Co. said Tuesday it will eliminate approximately 20,000 jobs globally-about 15% of its workforce-and close seven production facilities as the Japanese automaker attempts to reverse a dramatic downturn marked by heavy losses and slumping sales in key markets.
The sweeping cuts, unveiled under new CEO Ivan Espinosa, expand on a previously announced plan to reduce 9,000 jobs and represent part of a broader ¥500 billion ($3.4 billion) cost-cutting strategy. The company will consolidate its production footprint by reducing the number of manufacturing plants from 17 to 10 and slash component complexity by 70% by March 2028.
"We have a mountain to climb," Espinosa told reporters at a press conference. "Starting today, we build the future for Nissan." He added, "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."
The announcement comes after Nissan posted a full-year net loss of ¥670.9 billion ($4.5 billion) for the fiscal year ended March 31, compared to a ¥426.6 billion profit the year prior. Operating profit plunged 88% to ¥69.8 billion ($472 million), and the company warned of a projected ¥200 billion operating loss in the current quarter, according to CFO Jeremie Papin.
Nissan cited steep declines in vehicle sales in the United States and China, as well as U.S. auto tariffs, as key contributors to its deteriorating performance. Analysts also point to long-term strategic missteps during the tenure of former chairman Carlos Ghosn, including an overreliance on volume-driven sales and dealer incentives that have left Nissan with an aging product lineup.
Espinosa said the new strategy will prioritize profitability over scale and emphasized discipline in execution. "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," he said.
Nissan will leverage existing alliances with Renault SA in Europe and Dongfeng in China as part of its recovery effort. The company also confirmed it has scrapped plans to build a battery plant in Japan, as it continues to re-evaluate capital expenditures amid the global industry shift toward electric vehicles.
