Nissan Motor Co. $7201.T, Japan’s third-largest automaker, is implementing a sweeping cost-cutting initiative that will eliminate more than 10,000 jobs worldwide. With this new round of layoffs, the total workforce reduction will reach approximately 20,000 positions—representing about 15% of the company’s global headcount. This development, reported by NHK, underscores Nissan’s urgent efforts to restore operational efficiency and financial sustainability following sharp sales declines in key markets, particularly China and the United States.
The restructuring comes ahead of Nissan's scheduled earnings release on Tuesday for the fiscal year ending in March. The company had previously issued a profit warning, anticipating a record net loss in the range of ¥700 billion to ¥750 billion (approximately $4.74 billion to $5.08 billion), primarily due to impairment charges.
Once a powerhouse in global automotive manufacturing, Nissan has been struggling with persistent headwinds including shrinking demand, increased competition from electric vehicle startups, and reputational damage stemming from internal management upheavals. Sales have faltered in both the U.S.—its largest market—and in China, where domestic players continue to erode the company’s share.
Nissan’s workforce reduction is part of a broader restructuring aimed at improving profitability, optimizing its global manufacturing footprint, and re-aligning product strategies to evolving consumer preferences.
Sales declines in China and the United States, reflecting broader industry headwinds.
Cost inefficiencies in global operations, prompting drastic workforce adjustments.
Mounting impairment costs, contributing to a projected record net loss.
Pressure to remain competitive amid aggressive EV expansion by rivals.
Structural overcapacity, particularly in regions with waning demand.
The scale of Nissan’s planned layoffs highlights a major shift in how legacy automakers are responding to a rapidly transforming industry. As part of its realignment, Nissan is expected to reduce operations in underperforming regions and recalibrate its manufacturing base to focus on markets with stronger demand trajectories and better margins.
Job Reductions: The additional 10,000 cuts bring the total layoffs to around 20,000 globally, a 15% reduction in personnel.
Record Financial Loss: Anticipated net loss of up to ¥750 billion reflects deep structural challenges and non-cash write-downs.
U.S. Market Decline: North America remains a critical but weakening pillar of Nissan’s global strategy.
China Slowdown: Sales deceleration in the world’s largest auto market further strains earnings potential.
Operational Restructuring: A more agile, region-specific model is being pursued to optimize costs and revive competitiveness.
Nissan’s aggressive retrenchment marks one of its most significant strategic pivots in recent history. The company’s ability to stabilize its operations will depend not only on cutting excess costs but also on delivering product innovation and rebuilding brand equity. As traditional automakers continue grappling with rising electrification costs and fluctuating global demand, Nissan’s response may serve as a blueprint—or a cautionary tale—for its peers navigating similar challenges.
The full extent of Nissan’s turnaround plan is likely to emerge in its upcoming earnings report, offering crucial insight into how the company plans to weather the financial storm and reposition itself for a more sustainable future.
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