Japanese automaker Nissan announced plans to close seven plants and cut 20,000 jobs as part of a restructuring effort following significant profit losses last year. This move will reduce Nissan’s global workforce and decrease its number of factories from 17 to 10 by 2027.
“The decision (to reduce the workforce), of course, was not easy,” stated Nissan Motor Co. CEO Ivan Espinosa. The decision impacts various divisions, including manufacturing, sales, administration, and research and development, due to declining sales in key markets such as China and the United States.
Nissan’s consolidated operating profit fell dramatically from $2.78 billion to $300 million. Espinosa emphasized the need for urgent self-improvement to achieve profitability less dependent on volume. Although Nissan did not specify which plants will close, this round of cuts builds on previous reductions announced in November, resulting in a total 15% workforce reduction.
By December, Nissan aimed to form the world’s third-largest auto group with Honda by 2026, but merger negotiations failed in February. Additionally, U.S. tariffs imposed by President Donald Trump have added uncertainty to Nissan’s financial outlook, prompting Espinosa to call for “stability and clarity” in tariff policies while Japan continues negotiations with the United States.
— new from upi.com