Nissan Plans Major Job Cuts Amid Financial Struggles

Yokohama, Japan — Nissan announced on May 13, 2025, that it will eliminate an additional 11,000 jobs in a bid to restructure its struggling business. This decision follows a tumultuous year marked by significant financial losses and declining sales in key markets.

The latest round of layoffs, which will bring Nissan’s total workforce reduction to approximately 20,000 positions, was revealed during a news conference led by CEO Ivan Espinosa. This is part of the automaker’s efforts to navigate through a deeply challenging economic landscape.

Nissan reported an operating profit of just 69.8 billion yen ($472 million) for the fiscal year ending in March 2025, a staggering 88% decline compared to the previous year. The company has faced substantial challenges, including weakened demand in the United States and China, failed merger talks with Honda, and the pressures of U.S. tariffs.

Espinosa described the company’s recent financial performance as a “wake-up call.” He emphasized the need for Nissan to focus on self-improvement and profitability rather than merely increasing sales volume. “We must act with greater urgency and aim for a turnaround,” he stated.

Looking ahead, Nissan projects a concerning operating loss of 200 billion yen in the first quarter. Analysts attribute the company’s difficulties to years of strategy under former Chairman Carlos Ghosn, which prioritized volume over profitability, resulting in an outdated product lineup.

The company’s restructuring plans also include cutting the number of production plants from 17 to 10 and reducing parts complexity by 70%. In total, Nissan aims for cost savings of 500 billion yen by the end of its financial year 2024.

Despite rising sales figures in the U.S., up 5.4% in 2024, these increases required aggressive profit-reducing incentives. The company has stated it will continue implementing such strategies to meet sales targets, even if it means selling cars at a loss. This ongoing financial strain has left analysts questioning the sustainability of Nissan’s recovery efforts.

Nissan is expected to release its full financial results for the fiscal year on May 13, 2025, shedding more light on the implications of these job cuts and restructuring plans.