Nissan cuts about 15% of its global workforce, or about 20,000 employees, as the Japanese automaker reported losses on Tuesday, which just ended vehicle sales in China and other countries, as well as towering restructuring costs.
Nissan said it would reduce its number from 17 to 10 in its so-called recovery plan to take “decisive and bold actions to improve performance and create leaner, more resilient businesses to quickly adapt to market changes.” It did not say which plants were closed, but confirmed that the closure would include factories in Japan.
"We have a mountain to climb," CEO Ivan Espinosa told reporters. "From today, we have built a future for Nissan. ”
The cuts will be completed by March 2028, including the 9,000-headed heads announced last year. Nissan also announced the cancellation of plans to build a battery factory in Japan.
Espinosa, who was in charge earlier this year, said the latest plan has undergone a careful operational review to align production with demand, including proposing market and product strategies. He said Nissan will also use its partnerships, such as those with Renault SA in Europe and Northern Finnissan in China.
Nissan said President Trump's tariffs on auto imports have also hurt the company's performance. Yokohama, Japanese automaker lost $4.5 billion in the fiscal year in March. It also said its recovery plan includes an attempt to reduce costs by $3.4 billion.
“As new management, we are taking a prudent approach to reevaluating the goals and actively seeking all possible opportunities to implement and ensure a robust recovery,” Espinosa said.
Nissan aims to restore profitability by fiscal 2026.
But Nissan's chief financial officer Jeremie Papin admitted that the automaker faces serious challenges. Nissan did not provide a profit forecast for the March 2026 fiscal year, citing uncertainty.
Trump administration in March 25% tariff On about 8 million cars, the United States imports every year.
Earlier this month General Motors said yes Reduce its profit expectations During this year, its potential impact on automatic tariffs in 2025 may have potential impact. The revised forecast comes after Trump signed an execution order in April to relax some tariffs on cars and auto parts.
Ford also noted that U.S. tariffs were announced last week It is increasing prices On three models made in Mexico. Toyota said last week Mr Trump's tariffs will cost the company $1.3 billion In just two months. The automaker no longer predicts future commercial tariffs, and Toyota CEO Koji Sato said any future impact would be "very difficult to predict."