Nissan offers early retirement to Japan-based administrative staff for the first time in 18 years, as part of a global restructuring plan to cut 20,000 jobs worldwide.
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| Nissan launches first early retirement plan in Japan since 2007, targeting administrative staff as part of a global workforce downsizing and cost-cutting campaign. Image Courtesy: JN |
TOKYO, Japan – May 18, 2025:
Nissan Motor Corporation will offer early retirement to administrative employees in Japan for the first time since 2007 in a significant move underscoring the scale of its global overhaul. The program is part of the automaker’s sweeping Re:Nissan restructuring plan, aimed at slashing its global workforce by 20,000 jobs and cutting ¥250 billion in fixed costs by fiscal 2026, reads a JN post.
The early retirement offer will run from July to August 2025, and is open to full-time administrative employees aged 45 to 64 with a minimum of five years of service. It also includes re-employed staff who returned after reaching the mandatory retirement age. Eligible roles range from department and section heads to junior staff, but notably exclude employees in development, production, and design divisions.
Sources familiar with the matter say the package will include enhanced severance benefits and job-placement support, although Nissan has yet to announce the number of employees it expects to participate. The company is expected to provide further details internally by mid-June.
The move follows a sharp downturn in Nissan’s financial performance, with the company reporting a net loss of ¥670.8 billion for the fiscal year ending March 31. According to Nissan, the company's current cost structure is unsustainable given weakening revenues and a challenging global economic climate.
At a press conference last week, Nissan CEO Ivan Espinosa remarked,
“Our fixed costs are too high for our current revenue levels. We must act now to secure Nissan’s future.”
Under the Re:Nissan plan, 15% of Nissan’s global workforce will be affected. The reductions include 65% from manufacturing, 18% from administration, and 17% from research and development — including contract workers.
Nissan is also examining global production cuts across seven factories by fiscal 2027. According to a preliminary draft plan, the company may close the Oppama plant in Yokosuka and the Shonan facility operated by Nissan Shatai Co. in Hiratsuka, both located in Kanagawa Prefecture.
In response to speculation about these potential closures, Nissan issued a statement on Saturday, saying:
“At this time, we will not be providing further comments on this matter. We are committed to maintaining transparency and will communicate any relevant updates as necessary.”
This restructuring effort marks one of Nissan’s most ambitious overhauls in nearly two decades, as the company adjusts to shifting global demand, rising operational costs, and competitive pressure in the automotive technology and manufacturing sectors.