Nissan announces 11,000 additional job cuts and shuts seven global factories amid weak sales in China and the U.S., escalating its restructuring strategy.
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| As Nissan battles financial losses and competitive EV markets, new CEO Ivan Espinosa leads a global reset, slashing jobs and shutting plants to stay afloat. Image: Nissan |
TOKYO, Japan – May 13, 2025:
Nissan Motor Co. is set to eliminate a further 11,000 jobs globally and shut down seven factories, intensifying a major restructuring effort aimed at countering collapsing sales and mounting financial pressures. This move brings the total layoffs over the past year to approximately 20,000—around 15% of the company’s global workforce.
The Japanese automaker is grappling with severe headwinds in two of its largest markets: the United States and China. Declining demand, heavy discounting, and fierce competition—especially from domestic electric vehicle (EV) giants like BYD in China—have contributed to a ¥670 billion ($4.5 billion) annual loss. Nissan now joins a growing list of legacy carmakers struggling to realign in an evolving global auto landscape.
Company CEO Ivan Espinosa, who took the helm following the collapse of a proposed $60 billion merger with Honda and Mitsubishi, said two-thirds of the new cuts will affect manufacturing roles, while the remainder will be from sales, administrative, research, and contract departments. He described the past year as “challenging,” citing high costs and global trade uncertainty, particularly around U.S. tariff policy.
Espinosa emphasized the need for structural changes to “build a more resilient Nissan,” though the company did not specify which facilities would close. This has left uncertainty around major plants, including Nissan’s Sunderland factory in the UK, which employs about 6,000 people.
In the U.S., inflation and rising interest rates have dampened vehicle demand, while protectionist policies under former President Trump continue to affect operations. Meanwhile, China—once a growth engine for Nissan—has become a fiercely competitive EV battleground. Homegrown brands like BYD and XPeng are rapidly outpacing international rivals, with China now leading the world in EV production and innovation.
These economic challenges also prompted Nissan last week to scrap plans for a new battery and EV production facility in Japan, signaling a pause on large-scale investments.
The now-defunct merger with Honda and Mitsubishi, announced in early 2024, was intended to create a global auto powerhouse capable of rivaling Toyota, Volkswagen, and Hyundai. Its collapse due to integration disagreements triggered leadership changes, with Espinosa—then chief planning officer and motorsports head—stepping in to steer the company.
Now, under his leadership, Nissan is focusing on cost-cutting, realigning global production, and reconsidering its EV strategy. The company did not issue a forecast for the next fiscal year, citing “ongoing uncertainties” surrounding U.S. tariffs and economic trends.
Nissan’s retrenchment reflects wider industry struggles as traditional automakers confront rapid technological change, geopolitical risk, and evolving consumer demand. As Espinosa described the results as a “wake-up call,” Nissan’s transformation could serve as a case study for other carmakers navigating a shifting global market.
Whether these measures will be enough to revitalize the brand remains to be seen. But one thing is clear: the age of easy growth for conventional carmakers is over, and the race to adapt has already begun.