Nissan, the Japanese automaker, has announced plans to eliminate an additional 11,000 jobs worldwide and close seven factories as part of a major restructuring effort in response to declining sales, according to BBC.
The company has been hit hard by falling demand in China and aggressive discounting in the U.S.—its two largest markets. Compounding the challenges, a proposed merger with Honda and Mitsubishi fell through in February.
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With the latest round of cutbacks, Nissan has now announced roughly 20,000 layoffs over the past year—amounting to about 15% of its global workforce, BBC said.
Nissan has not disclosed which factories will be shut down. However, its Sunderland plant in northeast England—its only manufacturing facility in Europe, employing around 6,000 people—is not currently considered at risk of closure, The Guardian reported.
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As part of the restructuring, Nissan plans to cut its number of factories from 17 to 10 by 2027, targeting total savings of 500 billion yen (approximately £2.6 billion). The company also intends to streamline its supply chain by sourcing more components from a smaller group of suppliers to reduce costs, according to The Guardian.
Nissan recently had to appoint a new CEO. Like many of its competitors, Nissan is under pressure from U.S. tariffs and faces growing competition from rapidly expanding Chinese EV manufacturers, particularly in Southeast Asia and other key markets, Reuters said.
Nissan has seen a 5.4% increase in U.S. sales in 2024, though this growth was supported by substantial incentives that impacted profit margins.
The company is continuing this approach with the new Nissan One program, which provides dealers with cash bonuses to meet sales targets, even if it involves selling cars at a loss, Motor1 said.
